CPI(M) General Secretary Sitaram Yechury on Monday accused the Government of being “preoccupied with the Congress” and reaching an understanding with the principal opposition party on the GST while all other parties have been “kept out of the loop”.

Speaking to journalists at the Indian Women’s Press Corps (IWPC), Yechury said the regional parties and the Left were treated to a “brief meeting” with the Finance Minister Arun Jaitley in the process of consultations on the GST. He said besides “informing” other parties – including the Samajwadi Party (SP), the Trinamool Congress, the Biju Janata Dal and the Left Parties -- that the Government is “coming to an understanding with the Congress”, none of the issues raised by these parties were addressed.

“We held a very brief, couple of minutes meeting with the Finance Minister during which he said they are coming to some sort of an understanding with the Congress. What is the understanding, we do not know. We understand that the state finance ministers have adopted a resolution on the GST. We requested the FM to give us a copy of that resolution. That has not happened. But we are completely out of the loop,” Yechury said.

The CPI(M) General Secretary said the Government has not cared to inform other parties of what exactly the contours of the GST bill are.

“We do not till date know what the Government is bringing in the GST bill. There are two stages – first the Constitutional amendment has to be passed and only then the GST can be legislated. The Constitutional amendment has been listed. But the Government is only preoccupied with discussing it with the Congress… We are not privy to any discussions,” he said.

Yechruy said there is clear violation of all parliamentary practices and undermining of the federal structure.

“The practice in our parliamentary democracy has been that if you have any major issue, it is discussed with all parties. All party meetings are called. We all do our homework and give suggestions. This was the process adopted when we passed MNREGA, Right to Information and all important legislations. But why are such consultations not being done now? If the government thinks that it is sufficient to just deal with the Congress, we can only say that this is highly inappropriate. It is not the correct way to go about things,” said Yechury.

Making common cause with the AIADMK as well as arch rival Trinamool Congress, Yechury cited Tamil Nadu Government’s subsidised food scheme and the West Bengal Government’s decision to triple the tax on tobacco products to compensate the victims of the chit fund scam as instances of the state government’s initiatives that will be undermined by the GST regime.

“The right of the states to raise revenue and resources is a serious concern which may not technically be a part of the GST bill. This right is curtailed once the GST comes into effect. In the extreme case of a calamity, state governments will have to come to the Centre with a begging bowl. They cannot impose a cess or a surcharge. A mechanism needs to be worked out whereby the right of the states are not curtailed. What does Article I say – that India is a Union of States. You cannot do away with the states’ residual authority to raise revenue and resources,” he said.

Yechury said this issue needs to be discussed alongside the deliberations on the GST.

“Let us hear how you solve this. Let there be another Constitutional amendment if necessary,” he asserted.

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