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Congress counters PM’s VAT pitch with states’ GST dues

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Congress leader Rahul Gandhi on Thursday said the PM was indulging in ‘coercive’, not cooperative, federalism by blaming states for ‘fuel price hike’ or ‘coal supply shortage’ despite the Centre’s role in these. As a counter, the party also dragged the Centre into the issue of the non-reimbursement of GST dues to states.

“High fuel prices — blame states; coal shortage — blame states; oxygen shortage — blame states; 68% of all fuel taxes are taken by the Centre. Yet, the PM abdicates responsibility. Modi’s federalism is not cooperative. It’s coercive,” Gandhi tweeted, a day after the PM urged opposition-ruled states to slash the VAT on fuel prices.

Meanwhile, former finance minister P Chidambaram latched on to the finance ministry statement on the huge amount the Centre owed to states on the GST account to drive home the flip side of the PM’s demand. “On the day, the PM exhorted states to cut the VAT rate on petrol and diesel, the MoF announced that the Centre owes `78,704 crore to states! The amount owed is actually more. If you add the amounts that states claim are owed to them, the total amount may be bigger… Only the Controller of Government Accounts can certify the correct amount,” Chidambaram posted on Twitter and added, “It will be interesting to know why the MoF embarrassed the PM on the day he chose to admonish states!”

Congress spokesman Abhishek Singhvi also questioned the rationale of the Centre not even reimbursing agreed portions of the GST due to states.

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