In what is being seen as one of the biggest tax reforms in India, Goods and Service Tax Bill, is set to be passed but the only hitch in the way is Tamil Nadu’s opposition to it. AIADMK has said that it strongly opposes constitutional amendment bill on GST. AIADMK leader A. Navaneethakrishnan, who represents Tamil Nadi in Rajya Sabha, said that the GST Bill cannot be passed without fixing rates. According to the party, the Bill violates Article 21 and the basic structure of the constitution. NDA government’s GST Bill is one of the most crucial Bills, and experts see it as one of the biggest tax reforms in independent India.
The Bill was tabled on Wednesday in the upper house of parliament. Following numerous, negotiations and oppositions the government made amendments, and the Bill finally looks to get passed, the only hurdle being Tamil Nadu’s opposition to it. A consensus amongst political parties has been emerging in this Monsoon session. Finance Minister Arun Jaitley said, “All states have supported the idea of GST except the southeastern Indian state of Tamil Nadu which has some reservations.”
AIADMK with its 13 members has an important role to play in the Rajya Sabha. They have opposed the GST Bill on the grounds of effect on states on their fiscal autonomy and also permanent losses in revenue.
It has reportedly been estimated that there will be a loss of more than Rs 9000 crore annually to the state of Tamil Nadu as it is a big manufacturing and export state.