GST likely to cause huge revenue loss for Tamil Nadu: AIADMK

Amid government efforts to build consensus over GST Bill, AIADMK today stuck to its opposition to the reform measure, insisting that the law would cause huge revenue loss for Tamil Nadu.
Participating in the discussion on Committment to the Constitution, AIADMK member K Gopal also raised concerned about the Centre-State relations.
AIADMK has 37 members in the Lok Sabha and 12 members in the Rajya Sabha.
Gopal said central governments, whether that of UPA or NDA, have been trying to derail the powers entrusted to the states, adding that the GST (Goods and Services) Bill was one such danger.
The member also said Tamil Nadu Chief Minister J Jayalalithaa has voiced concern about the impact of GST on fiscal autonomy of states.

GST is likely to cause huge losses to manufacturing and net exporting states like Tamil Nadu, Gopal noted.

His remarks comes against the backdrop of the Centre seeking support from all parties for the passage of GST Bill.
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In Rajya Sabha also, AIADMK member A Navaneethakrishnan said that Tamil Nadu continues to have some concerns with the GST structure.
He said that the GST Council as a constitutional body impinges on the legislative sovereignty of both Parliament and State Legislature and jeopardises autonomy of the states in fiscal matters. "We strongly object to the provision for the GST Council," he said.

He also said that the decision making rules and voting weightage in the proposed Council are completely unacceptable.
They give the Government of India an effective veto in the GST Council and no distinction is sought to be made amongst the states in weightage, he said.
Hence, if at all a Council is formed, the weightage of the vote of the central government should be reduced to one- fourth of the total votes cast and that of the states should be increased to three-fourths of the total votes cast, Navaneethakrishnan added.
Further, the weightage of each state's vote should be in proportion to the representation of each state in the Council of the states, he said.

GST has different implications for different states based on their size and reliance on own tax revenues, he said.
"We would urge that our concerns are adequately addressed to ensure that the Constitutional Scheme of federalism is preserved," he added.