Himachal Pradesh Proposes GST Compensation Inspired by 'Kyoto Protocol' at GST Council Meeting
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Jaisalmer, Dec 21 (NationPress) The 55th session of the GST Council convened under the leadership of Union Finance Minister Nirmala Sitharaman, where Himachal Pradesh Minister Rajesh Dharmani sought compensation for the state, drawing parallels to the 'Kyoto Protocol' that addresses compensations for nations with low carbon emissions.
He also emphasized the importance of considering the state's low population density.
Technical Education Minister Dharmani raised concerns regarding GST compensation and requested the establishment of mechanisms to ensure that hilly regions like Himachal receive compensation for revenue losses resulting from GST implementation.
Additionally, he addressed the issue of Rs 200 crore demand notices issued by CGST authorities to toll operators in Himachal Pradesh.
Dharmani stressed that the notices from the Central GST department should be revoked, given the legal context, and sought further clarification on this matter.
The council engaged in thorough discussions on reducing the tax burden within the insurance sector. Dharmani advocated for the exemption of individual health and term insurance policies, particularly benefitting women, children, and senior citizens.
He also proposed the exclusion of GST on research and development for the initial 10-15 years, applicable to both public and private enterprises.
The recommendations from this meeting are anticipated to alleviate the compliance load for businesses and provide advantages to a wide array of consumers.
Earlier, in a pre-Budget meeting held on Friday, Dharmani made a compelling argument for the establishment of an 'Adaptation Fund' intended for the development of disaster-resilient infrastructure throughout the state.
He urged the Finance Minister to allocate at least 50 percent of the central share for land acquisition aimed at the expansion of Kangra airport and ongoing railway projects, such as Bhanupalli-Bilaspur and Chandigarh-Baddi.
Moreover, he insisted that these projects should be executed solely by the Central government rather than through joint ventures, given that Himachal Pradesh is a hilly state with an international border with China, and should therefore be exempt from contributing its share.
During the pre-Budget meeting, the Minister also pushed for the continuation of Special Central Assistance (SCA) and an increase in RDG grants and Central Road Infrastructural Fund (CRIF), which has seen a reduction from Rs 11,140 crore in 2020-21 to Rs 3,256 crore in 2025-26.
He also requested that the Union Finance Minister include ropeways under the PMGSY scheme and provide the 10 percent state share along with five years of maintenance costs for PMGSY projects. Additionally, he emphasized the need to establish a Skill University in the state, focusing on multidisciplinary technical, vocational education, and research, with particular attention to geometrics engineering, geo-sciences, environment engineering, and disaster-related studies.
