Mitra takes dig at Modi for slashing GST rate of luxury goods ahead of Council meet

Kolkata: State Finance and Industry minister Amit Mitra lashed out at Prime Minister Narendra Modi for announcing the reduction of GST rates for luxury goods on December 18, prior to the GST Council meeting scheduled on December 22.

The minister alleged that by making such an announcement, the Prime Minister has violated the 'Parliamentary Procedure' and undermined the constitutional power of the GST Council.

"The GST Council meeting was scheduled on December 22 but on December 18, the Prime Minister announced that only 0.5 percent to 1 percent of the items such as aircraft, SUVs, cigarettes and alcohol will be taxed at 28 percent," Mitra said in a Press conference at Nabanna on Thursday.

He also questioned the Prime Minister's role in announcing the tax rates for alcohol, which is left out of GST. Mitra reiterated that it is the GST Council alone that has been empowered to decide on the GST rates for goods and services.

"The Prime Minister's move undermines the constitutional authority of the GST Council and the neutrality of the council in decision making, which has been constituted under Article 279A of the Constitution. This will be highly detrimental to the future functioning of the council," Mitra added.

The Finance minister also

alleged a political intention on the part of the Prime Minister, since a similar demand made by the state government over a year ago was ignored.

"We had demanded that for all the items other than luxury goods and goods like cigarettes, where the GST rate is 28 percent, it should be reduced to 18 percent. But the Union government did not pay heed to what we said. Had our request

been met one year ago, some of the ill and negative effects of faulty GST could have been avoided and our economy could have been saved," said Mitra.

He announced that he will be vocal against the issue at the

GST Council's meeting that is scheduled to be held in Delhi on December 22.