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Nirmala Sitharaman opts out of GoM on IGST; Sushil Modi to head panel now

After Sitharaman's meeting with the FMs of Punjab, Madhya Pradesh, Rajasthan and Deputy CMs of Delhi and Pudducherry, a GoM was constituted to discuss issues related to IGST on December 4; earlier Sithraman was heading the panel

twitter-logoBusinessToday.In | December 11, 2019 | Updated 08:34 IST
Nirmala Sitharaman opts out of GoM on IGST; Sushil Modi to head panel now
Union Finance Minister Nirmala Sitharaman

The Centre has changed the composition of its Group of Ministers (GoM) on the Integrated Goods and Services Tax (IGST) after Union Finance Minister Nirmala Sitharaman decided to opt-out of the ministerial panel headed by her. Bihar Deputy Chief Minister Sushil Modi will lead the committee now. India Today citing sources reported that Sitharaman, who is also the Chairperson of the Goods and Services Tax (GST) Council, had decided to opt-out as the GoM's report was required to be submitted to the chairperson only.

After the Finance Minister's meeting with the finance ministers of Punjab, Madhya Pradesh, Rajasthan and Deputy Chief Ministers of Delhi and Pudducherry, a GoM was constituted to discuss issues related to IGST on December 4. The Finance Minister's name was "inadvertently" mentioned as Chairman of the GOM as she also heads the GST Council, said the sources said.

The current reshuffle comes days after states raised the issue of non-payment of compensation cess by the Centre since August. As per an estimate, the pending GST dues amount to around Rs 50,000 crore.

Also read: Compensation cess: 7 states to move SC if Centre doesn't pay up Rs 30,000 crore GST dues

Amidst muted GST revenue growth and worries over delayed allocation of compensation cess, a few state governments are even considering legal recourse against the Centre if their dues are not cleared in time.

Kerala, West Bengal, Punjab, Delhi and Chhattisgarh, Madhya Pradesh, Rajasthan and Union Territory of Puducherry -- all non-BJP states -- are planning to knock at the door of the Supreme Court if their concerns are not addressed. States get an average cess compensation of about Rs 7,500 crore per month (as per the last fiscal's numbers).

Also Read: GST revenue crosses Rs 1 lakh crore mark in November

The GOM on IGST constitutes ministers and officers from states as well as the Centre. It'll suggest measures for increasing the GST revenue. As per the earlier memorandum, Sithraman was its convenor.

Edited by Manoj Sharma

Also read: FM Sitharaman says govt will pay states' share of GST; 'compact will be honoured'

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