Friday, September 18, 2020
Home Fact-Check When Congress states opposed GST in 2013, and why BJP states are now ok...

When Congress states opposed GST in 2013, and why BJP states are now ok with it

Besides being filled with habitual liars, Indian MSM is also full of incompetent journalists. We had mentioned earlier how Indian TV Anchors are Jack of All Trades, how a journalist can be an expert on topic A and then on topic Z effortlessly. And this phenomenon has been highlighted in how Indian Media has responded to the new GST law which is being introduced.

The GST Act has not been even drafted as of now, only a bill to give powers to draft the bill is in the Rajya Sabha, yet you see various bogeys being raised by some journalists. We had already clarified on most of the technical issues of the proposed GST act here.

Now, to defend Congress’s stalling of this crucial bill, Indian MSM has started a new narrative: “But BJP states (including then Gujarat CM Modi) had opposed GST for many years during UPA rule, why this U Turn now? Wasn’t GST important then?”

Either half-knowledge or an intention to deliberately misguide the public can be behind this hilarious reasoning because the facts simply do not support this. So is there any truth in this claim that Modi and BJP had made a U Turn? Not really.

- Advertisement -

It is a fact that many states, including BJP ruled states had opposed the GST bill under UPA rule. But were only BJP states opposing GST? Lies. Even as late as December 2013, just 4 months before end of UPA’s 10 year rule, it was reported that the Congress-led ruling UDF government in Kerala has lent support to the Gujarat government’s apprehensions on GST. The Finance Minister of Kerala raised questions on numerous concepts under GST on which there was no consensus nor clarity. He was “openly critical of the Centre’s inability to give any “definite information” about the service tax currently received from each state or any projection about future revenues expected

In October 2013 also, a report in The Hindu quoted the Jammu and Kashmir Finance Minister (who also served as GST Empowered Committee Chairman) as saying this:

Most of the states…majority of the states have opposed bringing petroleum products and liquor in GST framework. They want to keep (the two items) out of GST,

Does the phrase “Most of the states” mean “only BJP states?”. Even when, at that point in time, Congress was ruling a considerable number of states, unlike now?

Again in July 2013 it was reported that 3 non-BJP states had opposed a provision in the GST Bill. Which were these 3 states? Non-BJP ruled Tamil Nadu. Non-BJP ruled Orissa. And Congress ruled Maharashtra! So if this GST bill was opposed only on political grounds, why did Congress’s own state Maharashtra oppose it then?

Even in May 2013, the then Chairman of the Empowered Committee of State Finance Ministers on GST Sushil Kumar Modi revealed that “Even Congress ruled states like Haryana and Maharashtra are opposed to it (GST) fearing loss of revenue,”

So it is clear that even in the last one year of UPA, at least 5 Non-BJP states had voiced their opposition to the UPA’s GST bill, and out of these, 3 states were Congress ruled states. So why is Indian MSM crying hoarse that only BJP had opposed GST? Isn’t it clear that BJP and non-BJP states i.e. most states in India were opposed to UPA’s GST bill?

Now that we know which states were opposed to UPA’s GST bill, it is important to know the reasons for opposition. We had reported on this in December 2014 itself, but since MSM is repeating a lie a thousand times, we may have to repeat the truth at least a few times. Till the last discussion of GST under UPA in November 2013, the states had some major demands:

1. Keeping Petroleum out of GST ambit
2. Keeping Alcohol out of GST ambit
3. Keeping Entry Tax out of GST ambit
4. Some sort of guarantee from Centre for potential revenue loss

The rationale behind these demands is quite understandable. GST wipes out most state-level indirect taxes, thus taking out one the major source of revenues for states. It is like a parent tells a child to stop earning from today, and instead promises him a sum of pocket-money. To have at least some financial independence in their hands, States asked for items like petroleum and alcohol (which have huge sales) to be kept out of GST, and also a guarantee from the Centre to offset their losses.

As explained by Congress Spokesperson Priyanka Chaturvedi in her tweet, Chidambaram the then Finance Minister never considered the states demands. He even openly rejected the 1% additional levy (which was mooted as a compensation to producer states). This obstinate stand of the UPA was the reason why although it had 10 years, it could never build consensus on GST.

How did the new NDA Government achieve consensus in less than 10 months, when UPA couldnt do it in 10 years? They agreed to the demands of the states. Out of the above 4 demands, 3 were accepted, and a bonus benefit was passed on to the state:

1. Petroleum was kept out of GST
2. Alcohol was kept out of GST
3. A proposal was sent to law ministry to work out a “Constitutional Guarantee” to compensate states
4. And the Bonus: The power to states of levying additional 1% tax levy, for maximum 2 years, to help augment state revenues

This is why BJP states, which were opposing the old GST bill, along with non-BJP states, are now agreeing to the NDA’s GST bill, because their concerns have been addressed. But Indian MSM who have become Congress spokespersons are desperate to spread the lie that this is change in stand is only politicking.

  Support Us  

Whether NDTV or 'The Wire', they never have to worry about funds. In name of saving democracy, they get money from various sources. We need your support to fight them. Please contribute whatever you can afford

Gauravhttp://bwoyblunder.co.in/
co-founder, OpIndia.com

Related Articles

Trending now

Here is criticism of ‘a particular community’ as approved by the Honourable Supreme Court

The Supreme Court has not taken kindly to a show by Sudarshan News, criticising a 'particular community'

Why you should support farm ordinances introduced by the Modi govt: The mother of all reforms

In mid-June, the Modi govt brought three ordinances related to farming, which can forever change the agricultural landscape of India. Folks, this is the mother of all reforms.

Of Macaulay and Nehru: A dilapidated education system and the need for the phoenix to rise from the ashes

A major consequence of the dilapidated education system, thanks to Nehru and Macaulay, is that an average Indian graduate is a test taker and a job seeker

Sudarshan TV Vs Supreme Court: Justice Chandrachud objects to representation of Muslims with skull cap, beard, green colour with flames in the background

Sudarshan TV had filed a plea challenging the court's stay on the telecast of the remaining episodes of their show 'Bindas Bol' about the alleged 'UPSC Jihad'

The Goan Inquisition by the Portuguese: A forgotten holocaust of Hindus and Jews

The Portuguese inquisition of Goa is an often forgotten and unspoken event by the ‘secular’ circles of Indian historians, despite various historical records exposing the gross exodus of not just Hindus, but also Jews that had escaped Medieval Europe to take refuge in India.

After recent spate of ‘Love Jihad’ cases, Yogi Adityanath govt may bring ordinance to check forced religious conversion: Report

After a large number of religious conversions linked to 'love jihad' in the state, UP govt may promulgate an ordinance against forced religious conversions.

Recently Popular

Nepal claims Indian cities Dehradun, Nainital under its ‘Greater Nepal’ campaign: Reports

The tension between Indian and its Himalayan neighbour Nepal is likely to mount again as Nepal continues to provoke India.

From Ranbir Kapoor to Sanjay Dutt to Gauri Khan: The celebrities who flew ‘high’ and have battled drug addiction

Many Bollywood celebrities have confessed they had a drug problem at some point in their lives, some even went to jail for the same

Kanagana Ranaut calls Urmila Matondkar a ‘soft porn star’ after Urmila attacks her asking to talk about drugs in its ‘origin’ Himachal Pradesh

Urmila Matondkar had slammed Kangana Ranut for criticizing Bollywood drug nexus, had asked to talk about drugs in Himachal Pradesh

Fact Check: Is India going under lockdown once again from September 25?

PIB has debunked rumours on social media about the reimposition of lockdown from September 25 in the wake of Coronavirus surge.

Begusarai: Mohammad Maufiz used to rape his eldest minor daughter, sexually exploited other two minor daughters

Mohammad Maufiz in Begulsarai arrested after it was known that he is raping his eldest daughter for 5 years, molested two other daughters

Lease of AMU school expires, family of former Jat King demand return of a part of land given by the king 90 years ago...

Former Jat king and freedom fighter Raja Mahendra Pratap Singh had leased 3.04 acres of land to AMU in 1929 for setting up a school

Pakistan: Hindu man found hanging with hand and legs tied from behind, Karachi police call it a suicide

The Karachi police have reportedly called it a suicide and allowed the body to be buried without even a post mortem.

Here is criticism of ‘a particular community’ as approved by the Honourable Supreme Court

The Supreme Court has not taken kindly to a show by Sudarshan News, criticising a 'particular community'

‘Vinod Dua said that quarantine centres were detention centres, justified stone-pelting on doctors by certain community’: Mahesh Jethmalani in SC

Vinod Dua, in his YouTube videos on pandemic, had allegedly urged people to come out on streets like the American people.

Why you should support farm ordinances introduced by the Modi govt: The mother of all reforms

In mid-June, the Modi govt brought three ordinances related to farming, which can forever change the agricultural landscape of India. Folks, this is the mother of all reforms.

‘Liberals’ target Amul over 1995 poster on actress Urmila Matondkar released after ‘Rangeela’ movie

The ad, created 25 years ago, was dedicated to actress Urmila Matondkar for her performance in the movie 'Rangeela'.

Disha Salian case: Her fiance Rohan Rai had to be called on intercom after she fell from 14th floor, took 25 mins to show-up:...

The probe into Disha Salian's death case is also gaining momentum, with the role of her boyfriend Rohan Rai in question

Of Macaulay and Nehru: A dilapidated education system and the need for the phoenix to rise from the ashes

A major consequence of the dilapidated education system, thanks to Nehru and Macaulay, is that an average Indian graduate is a test taker and a job seeker

Congress government in Rajasthan fudges Coronavirus data, state health bulletin reports fewer cases and deaths

A Twitter user shares how the coronavirus crisis is deepening in Rajasthan, with the govt doing little to improve it

Indian national Shaik Sadiq critical after being assaulted by a Pakistani in Saudi Arabia, mother requests govt to for help

Khatija Begum has requested the Indian Embassy in Riyadh and Indian Consulate in Jeddah to visit her son and provide help.

Sudarshan TV Vs Supreme Court: Justice Chandrachud objects to representation of Muslims with skull cap, beard, green colour with flames in the background

Sudarshan TV had filed a plea challenging the court's stay on the telecast of the remaining episodes of their show 'Bindas Bol' about the alleged 'UPSC Jihad'

Connect with us

243,917FansLike
453,059FollowersFollow
15,800SubscribersSubscribe