5% GST: Was this decision taken with the consent of the states? How is the decision of imposing a tax on the GST Council

Posted on 21st Jul 2022 by rohit kumar

Controversy continues over the decision to levy 5% GST on non-branded pre-labeled items for use by the poor. The central government has defended this decision saying that this decision has been taken with the consent of the finance ministers of all the states in the GST Council. An attempt has also been made to state that all the states were in agreement on this and in some states such tax was already being charged. But it is learned that most of the non-BJP ruled states of the country did not agree with this decision of the Center. After Delhi, West Bengal has also strongly opposed this decision.

 

Criticizing this decision of the Center, the Delhi government has said that if corruption is curbed, then there will be no need to impose this type of tax. The Finance Minister of West Bengal has expressed his dissent saying that his dissent has been ignored in taking the decision. Some other non-BJP ruled states have also expressed their dissatisfaction with the Centre's decision.

 

Congress fiercely attacked

 

Congress media in charge Jairam Ramesh has alleged that the decision to impose a five percent tax on pre-labeled items of unbranded companies was taken in a virtual meeting of the GST Council. In this, Finance Minister Nirmala Sitharaman was not physically available to answer the questions of the Finance Ministers of other states, so many states could not express their disagreement on this. This decision is being told as a unanimous decision of the GST Council, whereas it is not a unanimous decision, but a decision taken based on the majority.

 

He has said that many states including West Bengal had expressed their protest against this tax hike, but their protest was completely ignored. He has alleged that the GST rates on cremation items have also been increased to 18 percent. Congress has called this decision inhuman and strongly opposed it.

 

How is the decision in the GST Council

 

In fact, in the provision of the GST Council, emphasis has been laid on taking decisions by consensus. It has been said that since, through the council, the tax to be levied across the country will be determined, it is better to have a consensus on it. But if there is no consensus on any issue, a provision has been made to decide by the majority. In this, the Center has been given so much power that if it wants, it should not allow any decision to be implemented on its own.

 

Why is the opposition unimportant in the council?

 

An attempt is made in the GST Council to build a consensus on an issue, but if there is no consensus, the decision is taken based on the majority. But for this majority decision, the consent of 75 percent of all the council members is mandatory. Since the Central Government alone has been given 33 percent participation in the GST Council, so if a decision is not agreed to by the Central Government, and it does not vote 33 percent through its members, then the votes of the rest of the members together are only 67 percent. percent remains, and thus 75 percent of a decision is left behind from being passed by a majority. Thus no decision can be passed in the GST Council without the concurrence of the Centre.

 

Why is the BJP dominant?

 

Since, at present, the Bharatiya Janata Party has governments in 19 states/union territories, the Center is in a position to implement any decision with 33 percent of its votes on the support of these states, while the voices of non-BJP ruled states It remains unheard. This is the reason why the central government is in a position to say that it is a decision taken with a majority, even though it does not have the support of all non-BJP ruled states, while the voice of non-BJP ruled states is not included in it.

 

Also Read: GST shock! Amul increased the rates of milk, curd, and lassi, knowing which products have become expensive