GST curtailing financial autonomy of States: H.D. Kumaraswamy
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Former Chief Minister of Karnataka on celebrating fourth anniversary of GST regime
In a sequence of tweets on the fourth anniversary of the GST regime, former Chief Minister H.D. Kumaraswamy stated that the system has ‘snatched away the rights and freedom of States with respect to taxes’.
“The Centre, which had promised compensation to States for losses while including them in the GST regime, has now gone back on its words. Should the States celebrate the GST’s fourth anniversary for getting cheated on their tax resources,” the JD(S) chief requested.
He identified that Karnataka is but to get GST compensation of about ₹9,000 crore. “Karnataka too would have celebrated the occasion if it had got the compensation,” he stated.
Mr. Kumaraswamy argued that it might have benefited the State because it has suffered from useful resource crunch because of the impression of COVID-19.
“But instead of compensating for the losses on account of GST, the Centre is celebrating amidst the sufferings of States,” he stated, including that the principle intention of the GST regime is to divert revenues of States to the Centre in order that States must ‘sheepishly stand before the Centre like slaves to seek financial allocation’.
He blamed each Congress and BJP for a system that has turn out to be a ‘symbol of curtailing the financial autonomy of States in the federal system of governance’.
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