Delhi, Kerala demand no major decision in Wed GST meet, seek deferment

Kerala and AAP-ruled Delhi on Tuesday demanded deferment the GST Council meeting scheduled for February 20, saying a decision on "crucial issues" of GST rates on real estate sector and lottery should not be taken through a video conference meet.

The Finance Ministry, however, issued a media advisory stating that the 33rd GST Council meeting would be held on February 20.

In a letter to Union Finance Minister Arun Jaitley, Delhi Deputy Chief Minister Manish Sisodia said that such "crucial issues" cannot be discussed through a video conference and convening a physical meeting is important to take a consolidated decision.

Kerala Finance Minister Thomas Isaac too said that decision on important issue of GST on lottery cannot taken without a fair discussion and the lottery being included in Council agenda only a day before the meeting is unfair.

"I will walk out of the Council meeting if any decision is taken on lottery. Also I will henceforth not attend any Council meetings till the elections are over. This is not cooperative federalism," Isaac told PTI.

The Council meeting is scheduled to be held via video conference with Union Finance Minister joining from North Block, while state finance ministers connecting from their respective states.

Rationalisation of rates of Goods and Services Tax (GST) on real estate and lottery are on the agenda of the Council meet.

Sisodia in his letter said: "I would, therefore, request to kindly postpone the proposed 33rd meeting through video-conference and call for a physical meeting at an appropriate date".

Isaac, further, said that discussions on serious issues cannot take place through video conference and stressed that it was unfair for the Group of Ministers (GoM) on lottery to meet when two senior ministers were not able to attend it.

"Meeting though video conference should be held only when some urgent matter has to be decided. This is being done to avoid collective response. We will protest tomorrow," Issac said.

The eight-member GoM, under Maharashtra Finance Minister Sudhir Mungantiwar, set up to look into the taxation of lottery in a meeting favoured a uniform GST rate of either 18 per cent or 28 per cent, but left it to the GST Council to take a final call.

Currently, a state-organised lottery attracts 12 per cent GST while a state-authorised lottery attracts 28 per cent tax.

The other members of the committee are West Bengal Finance Minister Amit Mitra, Kerala Finance Minister Thomas Isaac, Assam Finance Minister Himanta Biswa Sarma, Punjab Finance Minister Manpreet Singh Badal, Goa Panchayat Minister Mauvin Godinho, Karnataka Finance Minister Krishna Byre Gowda, Arunachal Tax and Excise Minister Jarkar Gamlin.

While Isaac had sought deferment of the GoM meeting on medical ground, Badal was not present as he had to present the state budget in Punjab Assembly