Story of relief in GST
The government had already completed preparations to improve the GST rates. Finance Minister Nirmala Sitharaman spoke in meetings with several different groups for six consecutive months. Prime Minister Modi had clearly said that the middle class and poor people should be given great relief and this purpose was discussed at many levels.
At the same time, Home Minister Amit Shah also held several meetings on this subject. The aim of these meetings was that there should be no dispute about tax on any sensitive item politically. PM Modi also said that the revenue situation should be clear so that the state governments also remain satisfied and the federal structure remains strong.
The meeting ended till 7 pm till 9 pm
A two -day meeting of the GST Council was called to take a decision. PM Modi had announced to give relief to the public in GST from the Red Fort. The meeting took place on 3 September, but the opposition states were concerned about the lack of revenue. Especially West Bengal, Punjab, Kerala and Karnataka opposed the cuts. For this reason, the meeting which was to end by 7 pm lasted till 9:30 pm.
Opposition states demand a meeting till next day
Punjab and West Bengal later agreed in the meeting, but Karnataka and Kerala remained adamant. Both these states wanted the central government to give the assurance of compensation for revenue loss. Opposition states demanded to postpone the meeting by the next day, but Finance Minister Nirmala Sitharaman was ready to sit overnight to reach the final decision.
After all, how did all the states agreed?
When the deadlock remained in the meeting, Chhattisgarh Finance Minister OP Chaudhary said that if Karnataka and Kerala are not getting ready, then voting should be done. In the GST Council, all members usually decide only by consent, voting is very low. Chaudhary repeated this several times. In the end, Nirmala Sitharaman also had to say that those who want voting, say clearly. Due to this, the opposition states were afraid that the public may be angry with protesting in voting. Then West Bengal intervened and celebrated Karnataka and Kerala. In this way, everyone agreed and the Finance Minister announced the decision late at night.
Finance Minister confident the states
In the meeting, Nirmala Sitharaman clearly said that there will be no injustice to any state. He pointed to the table kept in the room and said that the money kept here is from both the Center and the states. If the states are suffering, then the Center is also happening. But right now our aim is to give relief to the general public. He said that the center does not have separate money, so the states and the center will have to do this work together. He assured that the interests of the states will be taken care of.
Impact of GST improvement: Initially a little shortage, later benefits
According to sources, due to GST improvement, GST collection may be affected in the first six months. The collection may decrease in the remaining period of this financial year. But from the next financial year, its positive results will start showing. This will bring more money in the hands of the people and their shopping will increase. This will gradually increase revenue.