Asim Dasgupta meets Pranab over GST

Asim Dasgupta, who heads the panel of state finance ministers on the proposed goods and services tax, today met finance minister Pranab Mukherjee to further explore the proposed constitutional amendment bill for the rollout of the GST from 1 April next year.

The meeting assumes significance after Mukherjee's plea to the opposition in parliament on Thursday to ask states ruled by them to facilitate the introduction of the new direct tax regime.

"This has been a very useful meeting with the union finance minister aimed at convergence on issues relating to constitutional amendment for GST. This is the closest of convergence," Dasgupta told reporters after the meeting.

Yesterday the empowered committee of state finance ministers on GST had rejected a draft constitutional amendment bill prepared by the centre on the ground that it gives the union finance minister a veto power on state taxation issues. Mukherjee told parliament that he did not wish to become a 'super FM' but needed the veto power. (See: Opposition spurns Pranab plea to help speed up GST)

"This proposed draft constitutional amendment bill related to GST in its present form is not acceptable to the states," Dasgupta had said. He had earlier said states are against infringement on their financial autonomy and have certain reservations on the draft bill's provisions for the GST council and the GST disputes authority.

"States in general have reservations about the union finance minister having any veto power on state GST. The union finance minister, of course, would have an exclusive authority with respect to central GST," Dasgupta said.