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

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?”

- Ad - - article resumes -

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.

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.

Help Opindia Reach Every Indian. Share This Post
We need your support to survive in the media industry. Please consider paying us for the content we produce:

To know more about these payments, please click here.


Big Story

While the date of the recording is not clear, it can be inferred from above conversation that it took place sometime in July.

2019 World Cup Is Here!

Catch the latest on Cricket World Cup as it unfolds, special coverage by Opindia

To Advertise on Opindia.com Click here

Barkha Dutt’s strange coincidences with a Kashmiri who wished death upon PM Modi and Amit Shah

Idrees ul Haq, with whom Barkha Dutt had a series of ‘coincidences’ is a known separatist sympathiser

Deplorable ‘journalists’ further Pakistan propaganda and undermine India: Why should their patriotism not be questioned

Indian 'journalists' and 'intellectuals' have taken up the mantle of peddling the Pakistan narrative on Kashmir it appears.
Shah Faesal was reportedly planning to approach ICJ over India’s decision to abrogate Article 370

IAS-turned-politician Shah Faesal was travelling to file case against India in the ICJ over Kashmir issue: Report

Shah Faesal was nabbed at the New Delhi International Airport on August 14 when he was trying to leave the country, reportedly, to Turkey

Here is why Shobhaa De could be first in a long list to be exposed by Pakistan

India’s stand on abrogation of Article 370 and 35A and dilution of Jammu and Kashmir from a state to a Union Territory has dropped the baby of pretence.

Army veteran Surendra Poonia receives threats from Pakistan, files online complaint with cyber crime portal

Major Poonia shared screenshots of the threats he has been receiving as well as screenshot of message which said how an unknown number had threatened to character assassinate him and malign him.

Purported email screenshots of Kavita Krishnan’s team show them discussing use of retired judges and ex-military officers for Kashmir propaganda

Purported screenshots of internal emails of urban naxals are being circulated on social media
PM Modi's debut on Man vs Wild becomes most viewed show worldwide with 3.6 billion impressions, leaving Super Bowl behind

PM Modi’s debut on Man vs Wild becomes most trending show worldwide with 3.6 billion impressions, leaving Super Bowl behind

The appearance of PM Modi on Discovery’s ‘Man vs Wild’ show with survivalist and adventurer Bear Grylls has garnered 3.6 billion impressions and counting.

After the abrogation of Article 370, Pakistan Minister expresses angst over Rahul Gandhi not winning 2019 elections

After abrogation of Article 370 by the Modi government, Congress and Pakistan seem to have found an ideological soulmate in each other
Shehla Rashid bats for Armed insurgency in Kashmir

Career-protester-turned-politician Shehla Rashid downplays terrorism in Kashmir, calls legitimate action by India ‘state terrorism’ instead

According to Shehla Rashid, India has been inflicting atrocities on Kashmiris since 1953
Syed Akbaruddin addressed the media yesterday at the UN, affirmed that any decisions regarding Jammu and Kashmir is India's internal matter and if Pakistan wants any talks with India, it has to stop promoting terrorism first.

We do not need international busybodies to tell us how to run our lives, Pakistan using Jihad to promote violence: Syed Akbaruddin

"India is a vibrant democracy, we do not need international busybodies to tell us how to run our lives", India's ambassador to the UN Syed Akbaruddin.
Subscribe to Day's Top Stories
[newsletter_form type="minimal"]
- Advertisment -

Latest articles

Connect with us

180,671FansLike
170,109FollowersFollow
89,077SubscribersSubscribe
Help Opindia Reach Every Indian. Share This Post