Sushil Modi to head GST panel

Bihar Deputy Chief Minister Sushil Modi has finally agreed to head the empowered committee on goods and service tax (GST). Modi had initially declined to accept the chairman’s post, but Union Finance Minister Pranab Mukherjee and state finance ministers managed to convince him to accept the offer.

Mukherjee called on him twice and held detailed discussions persuading him to agree, citing his seniority among all state finance ministers and his importance in the panel as a leader of the Opposition.

Even though Modi is a minister of a BJP-led NDA-ruled state, senior panel members believe that opposition to GST from other BJP-ruled states, including Madhya Pradesh and Gujarat, could delay the roll out of the indirect tax reform initiative.

After former West Bengal finance minister Asim Dasgupta stepped down from the chairmanship of the panel, the contenders for the post, along with Modi, were Madhya Pradesh Finance Minister Raghav Ji and Orissa Finance Minister Prafulla Chandra Ghadei. However, with Mukherjee supporting Modi, today he was unanimously elected the Chairman.

According to officials, apart from Mukherjee, Modi also got the support of most state finance ministers, including those from Congress-led states. Senior members of the empowered committee said the Congress Party was pushing for Modi because he was the least opposed to the GST move.

During today’s meeting, Delhi Chief Minister Sheila Dikshit proposed his name and the move was supported by Ghadei.

Kerala Finance Minister K M Mani, who had expressed his desire to become the chairman and had even written to Pranab Mukherjee, was politely denied the opportunity. “The Union finance minister wrote back praising him as a senior member of the committee but he was not backed to become the chairman,” said a member of the empowered panel.