Is the Centre Taking Unfair Credit for GST Revisions?
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Synopsis
West Bengal's Chief Minister Mamata Banerjee has sharply criticized the Central government for claiming credit for the revised GST rates, asserting that states are the ones shouldering the financial burden. Despite the challenges, she expressed happiness over the relief provided to the common people. This ongoing tension highlights the complexities of state and central fiscal relationships.
Key Takeaways
- GST Revision: New GST rates provide consumer relief.
- Financial Burden: States bear the financial strain.
- Criticism: Central government accused of taking undue credit.
- Funding Issues: States denied rightful central funds.
- Equity: Call for a fairer tax structure.
Kolkata, Sep 22 (NationPress) As the revised Goods and Services Tax (GST) rates come into effect starting Monday, West Bengal's Chief Minister has once more directed a sharp critique at the Central government. She accused it of claiming undue credit for the tax concessions, while emphasizing that the financial burden of the revised rates predominantly rests with state administrations. Mamata Banerjee expressed her satisfaction that the public is receiving some relief.
Continuing her engagements from the previous days, Chief Minister Banerjee inaugurated several community Durga Puja pandals on Monday. During one of these inaugurations, she reiterated her criticism of the Union government regarding the GST issue.
While she did not mention any names explicitly, it was clear her remarks were aimed at Prime Minister Narendra Modi.
“One individual is taking all the credit, as if it solely belongs to him. Our state is set to incur a financial loss of approximately Rs 20,000 crore due to the new GST rates, without any compensation forthcoming. Therefore, the true credit should go to the states,” asserted Chief Minister Banerjee.
She also pointed out that she was the first to highlight how higher GST rates were applied to essential goods, while luxury items like diamonds were taxed at lower rates. “I was the first to advocate for the elimination of GST on life and medical insurance products. Despite the financial strain on our state, I am pleased that the common people are experiencing some relief. However, the Union government cannot claim all the credit,” she said.
At the opening of another pandal, she accused the NDA government of withholding legitimate central funds due to West Bengal under various centrally-sponsored schemes such as MGNREGA, PMAY, and PMGSY.
“In addition to the impending Rs 20,000 crore financial burden from the GST revision, the Union government is further complicating our situation by denying us our rightful share of central funds from various projects,” Chief Minister Banerjee concluded.
Point of View
The ongoing tension between the Central government and state administrations illustrates the complexities of fiscal management in India. While the GST revisions aim to provide relief to consumers, the financial repercussions on states cannot be ignored. It is vital for the Central government to collaborate with states to ensure equitable financial distribution, fostering a cooperative federal structure.
NationPress
22/09/2025
Frequently Asked Questions
What are the implications of the new GST rates?
The revised GST rates aim to provide some relief to consumers, but they also impose a significant financial burden on state governments, which are not compensated for these losses.
How much financial loss is West Bengal facing due to GST revisions?
West Bengal is expected to incur a financial loss of approximately Rs 20,000 crore due to the revised GST rates.
What criticism did Mamata Banerjee make against the Central government?
Mamata Banerjee criticized the Central government for taking undue credit for the GST revisions while shifting the financial burden onto state governments.
What other issues did Banerjee raise regarding central funds?
She accused the NDA government of depriving West Bengal of its rightful share in central funds under various centrally-sponsored schemes.
What was Banerjee's stance on the previous GST rates?
She highlighted that higher GST rates were unfairly applied to essential items while lower rates were assigned to luxury goods, advocating for a more equitable tax structure.
