PM Modi bypassed the GST council: Andhra Pradesh minister

Yanamala Ramakrishnudu, Minister of Finance and Planning, Commercial Taxes and Legislative Affairs in Andhra Pradesh government said that the announcement made by Prime Minister Narendra Modi that the tax rates of 99 percent of the items would be brought to 18 percent or below under GST is not appropriate. He said that instead of that the Central Government should submit their proposals to GST Council for the decision.

Ramakrishnudu also stated that the finalisation of tax rates of goods and services is the domain of the GST Council which is a constitutional body. His statement comes after the 31st GST Council meeting held on Saturday here.

The Minister also expressed concern that the Integrated Goods and Services Tax (IGST) balance to an extent of Rs 1 lakh crore lying as on March 31 was distributed to the states to an extent of 42 percent as per the Finance Commission devolution formula after putting the entire amount in the consolidated fund of India.

"They should have deposited only Rs 50000 crore into consolidated fund of India and devolved Rs 21000 crore to the states. The remaining amount of Rs. 50000 Cr should have been directly distributed to the states. Thus the states should have got Rs 71000 crore instead of Rs. 42000 crore distributed. The Centre got Rs. 29000 crore extra and to this extent, the states got a lesser amount. The State of Andhra Pradesh lost Rs. 1000 crore on this account during the year 2017-18. This amount should be released to the state immediately," he said.

He further stated that the ad-hoc settlement of IGST should also be released without delay which is expected to be about Rs 500 crore.

The Minister also expressed his concern over no exemption to private tour operators who provide services to Haj Pilgrims. He, however, welcomed the concessions provided to Haj Pilgrims while travelling in chartered flights.