Amit Mitra's win breaks GST jinx

Election victory likely to expedite process in empowered panel of state finance ministers

This Assembly elections has broken the so-called goods and services tax (GST) jinx.

Amit Mitra’s win has done away with the need to re-elect a chairman to the state finance ministers’ panel on GST. Such an exercise had become a given after almost every election. All the previous chairmen had to resign as they had either lost Assembly elections or their party broke alliance with the ruling party. One of them had to put in papers because he was allegedly involved in corruption.

Mitra defeated former and founder chairman of the Empowered Committee of state finance ministers Asim Dasgupta by  21,000 votes in Khardaha, West Bengal.

Kerala’s K M Mani, who had to resign as the panel's chairman after corruption allegations, also, won the polls. His win in Pala for a record 13th time on a Congress (M) ticket, defeating his nearest rival Mani C Kappen by 4,700 votes.

Thursday’s mandate might hasten the process to bring in the proposed laws and rules on GST, particularly in the state empowered committee. However, the strength of the Bharatiya Janata Party might not change much in the Rajya Sabha, where 57 seats are coming up for elections next month. So, the ruling coalition has to deal with opponents, particularly the Congress and AIADMK, deftly to clear the Constitution amendment Bill in the Upper House.

The Constitution amendment Bill could not be tabled in the Rajya Sabha in the Budget session of Parliament. Congress has been demanding a cap of the GST rate at 18 per cent in the Bill, but met with stiff opposition from the ruling party as this would curb the flexibility of the proposed GST Council to change rates when needed. The AIADMK had said fiscal autonomy of states would be compromised if the present proposals were accepted.

Mitra was made chairman of the committee in February, after Mani stepped down as Kerala’s finance minister on graft charges. Mani was appointed in March 2015 and had put in his papers in November of that year. Mitra is yet to call a meeting of the panel.

After the passage of the Constitution amendment Bill, pieces of legislation on GST itself would come before Parliament and the Assemblies. Rules will be framed then.

The empowered committee has to discuss key issues on the proposed rules. The empowered committee met in February to elect the chairman, but Mitra himself did not attend for health reasons.

EMPOWERED PANEL OF STATE FINANCE MINISTERS ON GST: THE UPS AND DOWNS

2004

• A smaller body of empowered committee is enlarged to include every state finance minister

2011

• West Bengal finance minister Asim Dasgupta (pictured) remains chairman since inception. He wins 2006 elections, too. Panel asked to prepare states for GST in 2007-08. Dasgupta loses in 2011 Assembly elections & the chairman’s post
  

 

Finance minister of Bihar Sushil Modi (pictured) made chairman of the empowered committee

2013

• June: Modi resigns after his party, BJP, breaks alliance with the Janata Dal (United)
   
• July: Jammu & Kashmir finance minister Abdul Rahim Rather (pictured) takes over the mantle

2015

• January: Rather loses Assembly election in J&K
   
• March: Kerala finance minister K M Mani (pictured) made chairman of the GST panel
   
• November: Mani resigns following charges of corruption

2016

• Februaray : WB finance minister Amit Mitra (pictured) made chairman
   
• May : Mitra wins Assembly election in West Bengal and retains his post as the GST panel chief