COIMBATORE: Union finance minister Nirmala Sitharaman defended different GST rates imposed on different products, stating that the rates were fixed by consensus in the GST council which has representatives from all states.
“How can a value-added product and a raw product be taxed uniformly?” she asked at a press conference in Coimbatore on Thursday in response to a hotelier’s complaint to her a day ago that multiple GST rates followed for food items served in the hotel led to operational difficulties.
His speech at a meeting, where Nirmala interacted with industrialists in the city, triggered a debate on GST rates.
The finance minister said such remarks only offer fodder for those who criticise GST.
“We are not bothered about criticism. We are taking all efforts to simplify GST and reduce the burden on people,” she said.
She said the GST council fixed the rates after a group of ministers (GoM) did a detailed analysis. The GoM had representatives from all states, including non–BJP ruled states like Tamil Nadu. She added that all decisions in the GST council in the past seven years were adopted by consensus, except for one.
Nevertheless, whenever issues are raised about GST rates, the council decides based on merit. “The hotel industry too has submitted their requests,” she said.
On Tamil Nadu’s allegation that tax revenue was not shared with the state, Nirmala said every 100 tax collected is shared equally with the states.
“Even from the Centre’s share, 41 % is given to the state. I have no power to increase or decrease the state’s share,” she said.
“A responsible govt should speak in a responsible manner,” she said.
She then hit out at the Tamil Nadu govt for alleging that the Centre was not allotting funds for Chennai Metro Rail phase 2.
She said the first phase was a central sector scheme while the second phase was a state sector project. “Did you not agree for implementing it as a state sector scheme? So do not blame us,” she said.
Nevertheless, the Centre negotiated with funding agencies and arranged 21,560 crore loan for the project.
“Of 21,560 crore, TN has utilised only 5,880 crore. In due course, we will absorb it as a central sector scheme. But you have not even utilised the available sum,” she said.
On holding back funds for SSA, she said the govt can sign the MoU with the Centre and get the funds. “You cannot run something on your terms and demand funds,” she said.
To a query on chief minister M K Stalin’s US visit, Nirmala said she welcomed his efforts to bring foreign investments to TN through his overseas visits. “Let’s see what comes,” she said.
The finance minister slammed the TN govt for not implementing the PM Viswakarma Yojana. “It is about skill training and has nothing to do with caste. There is a huge response in other states. But they (TN govt) block every good project here because they feel the credit will go to the Centre,” she said.
Nirmala said those following ‘Dravidian politics’ say they are guardians of ‘social justice.’
“But there is caste war on the streets, school children are stabbing each other, excreta are mixed in drinking water in this state. The Hindi opposition in TN is also hypocritic,” she said.
