WB seeks consensus at GST Council; states allowed e-way bills for movement of gold & precious stones

Kolkata: The West Bengal government on Tuesday wrote to Union Finance Minister Nirmala Sitharaman asking her to take decisions at the ongoing GST Council meeting by consensus, shunning "majoritarianism".

Separately, West Bengal Finance Minister Chandrima Bhattacharya, who is attending the congregation in Chandigarh told PTI on Tuesday the Council besides approving changes in tax rates on some goods and services and also allowed states to issue an e-way bill for intra-state movements of gold and precious stones.

"The GST Council on Tuesday accepted an interim report of the Group of Ministers (GoMs) which is looking into the rationalisation of rates under the indirect tax system. It has also approved altering tax rates on some goods and services and also allowed the states to issue an e-way bill for intra-state movements of gold and precious stones," Bhattacharaya told PTI over the phone.

She said that on Tuesday, the GoM "supported" withdrawal "of exemption given to renting of residential dwellings by businesses for residential use".

In a two-page letter to Sitharaman, the Principal Chief Adviser to Chief Minister Mamata Banerjee and the Finance Department, Dr Amit Mitra, cited a recent judgment of the Supreme Court in this regard.

"Post decision of the SC, it has become imperative for the GST council to take every decision by consensus and to leave aside any shade of majoritarianism, not only for the future credibility of GST council but also to uphold the rich tradition of this august body," the former finance minister of the state said.

The Supreme Court on May 19 ruled that the Goods and Service Tax (GST) council's recommendations are not binding on Union and State but have a persuasive value as the country has a cooperative federal structure.

A bench of Justices DY Chandrachud, Surya Kant, and Vikram Nath also held that the Centre and State governments have simultaneous powers to legislate on GST but the council must work in a harmonious manner to achieve a workable solution.

Mitra said in the letter, "On the backdrop of this extremely significant observation of the honourable apex court, it has become extremely important for the GST council to invariably arrive at a consensus for taking any decision." Bhattacharya said that on Wednesday, there will be discussions on extension of compensation to states beyond June 2022.

"Today there were discussions on most of the issues. Tomorrow, discussions will be held on the imposition of 28 per cent GST on horse racing, casinos and online gaming." she said.

The two-day GST Council's 47th meeting is underway in Chandigarh to take a call on several key recommendations by ministerial committees aimed at making the tax system more efficient.