Amit Mitra asks FM Sitharaman to urgently call GST Council meeting

Points out that under the regulations governing the all-powerful body, a meeting should be held every quarter

Former West Bengal Finance Minister Amit Mitra has written to Union Finance Minister Nirmala Sitharaman asking her to convene a meeting of the Goods and Service Tax Council, and pointing out that as per the regulations governing the all-powerful body, a meeting should be held every quarter.

Mitra, who currently serves as Principal Chief Advisor to Chief Minister Mamata Banerjee and the state’s Finance Department (cabinet rank), said in the letter dated November 16 that as per Rule 6 of the Procedure and Conduct of Business Regulations of the GST Council in pursuance of Article 279A (8) of the Constitution, the Council is expected to meet once every quarter of the financial year.

“You have not called a single meeting of the council (physical or virtual) over the last four and a half months. Not even an intimation of any exigency was communicated to the Minister of State, Finance, of West Bengal or any other member of the GST Council,” Mitra wrote in the letter, a copy of which has been reviewed by Business Standard.

Mitra said that this undermined the Council, “the only Federalist institution, where ministers of all states and union territories come together, under your (Sitharaman’s) chairmanship.”

There were no comments from Sitharaman’s office, on the letter, at the time of publishing.

Mitra also stated that the outcome of the two Group of Ministers formed in 2021, on rate rationalization, capacity-based taxation and special composition scheme in certain sectors, had still not had any finality.

“May I point out that in the federalist spirit, all states are doing stellar work in increasing GST collections which benefits the central government as much as it benefits the states,” Mitra wrote.

“I humbly urge you to call a meeting of the GST Council urgently. May I also urge you to bring finality, through consensus, on the serious matters pending with 2 GoMs for over a year,” he said.

Mitra also asked Sitharaman to recognize the work being done by states on enhancement of GST collections.

The next meeting of the Council is expected to take place in Madurai, and is expected to decide on taxing online games, decriminalising certain offences, and setting up an appellate tribunal. It was supposed to take place in August, and there is no clarity on when it could be held.