Maharashtra, Tamil Nadu and Orissa have opposed certain provisions under the Goods and Services Tax Bill. Appearing before the Standing Committee of Parliament on Finance, representatives of these States said they were opposed to the provision for setting up a Dispute Settlement Authority to settle matters between States or between States and the Union with regard to GST. States can appeal to the Supreme Court against the decision of the Authority.
The opposition by the Congress-ruled Maharashtra is interpreted as a setback to the UPA Government, which is trying to fast-track reform-oriented laws.
To pass the Constitution (One Hundred and Fifteenth Amendment) Bill, 2011, known as GST Bill, the Centre needs two-third majority in both Houses of Parliament and the support of at least 15 States.
The States told the panel that the role of the Authority would be more than giving suggestions to States on matters regarding the GST. They feared that the Authority would have an “overarching” influence over the States.
Tamil Nadu, sources said, opposed the creation of the Goods and Services Tax Council also. The Council, consisting of State Finance Ministers, Union Finance Minister and Union Minister of State for Revenue, is supposed to recommend implementation of GST.
The Chairman of Empowered Committee of State Finance Ministers, Mr Sushil Kumar Modi, had also appeared before the panel recently. He, sources said, also expressed reservations on certain “anti-federal” clauses.