Name inadvertently mentioned as head of GoM on IGST, says Sitharaman

Finance Minister Nirmala Sitharaman on Thursday said her name was inadvertently mentioned as head of GoM set up to look into the issue of splitting of the Integrated Goods and Services Tax (IGST) between the Centre and states, and the confusion was cleared subsequently.

Replying to the debate on supplementary demands for grants in the Rajya Sabha, the minister said it is not appropriate for her to head the Group of Ministers (GoM) while heading the GST Council, consisting of state finance ministers.

She said that while she was meeting states regarding GST compensation issue, "there was a confusion", that Nirmala Sitharaman has withdrawn from a GoM.

"Is there something wrong? Absolutely nothing wrong. Heading the GST Council as its chairman, I cannot say I am the head for this group of ministers," the minister said and added that whatever was "inadvertently" released by the ministry was withdrawn, and announced Bihar Finance Minister Sushil Modi would be heading it.

So, "there is nothing suspicious about it", Sitharaman added.

The minister also said the Sushil Modi-headed GoM is expected to give its report. The GST Council, the highest decision-making body of the indirect tax regime, will consider it no sooner the report of the group is presented, she added.

Earlier on the issue of states not getting their due share from IGST, which is levied on the transfer of goods from one state to another, the minister said no state claimed IGST dues in 2017-18 but in the subsequent year, it has been paid.

Claims were subsequently made and the GoM will look into divisibility of the IGST revenue for 2017-18.