THIRUVANANTHAPURAM: Finance Minister K N Balagopal’s claim in the state assembly that Kerala had opposed the controversial 5% GST on pre-packed, labelled food items weighing up to 25 kg at the GST Council meeting is belied by the minutes of the council meeting.
No state, including Kerala, had opposed the new tax, showed the minutes of the 47th GST Council meeting held on June 29, 2022. Amid criticism by several opposition parties, Union Finance Minister Nirmala Sitharaman, had earlier claimed that it was a “unanimous” decision taken by the council meeting attended by all states.
Balagopal told the assembly on July 18 that the state had raised its objections at the council meeting. The council’s decision to impose 5% GST on pre-packed, labelled food items like atta, paneer and curd was based on the recommendation by a group of ministers (GoM), a committee tasked by the 45th council to study rate rationalisation and other rate-related issues.
Interestingly, the GoM included members from states ruled by Opposition parties, including LDF-ruled Kerala, Congress-ruled Rajasthan and TMC-led West Bengal. Other members were Karnataka, Bihar, Goa and Uttar Pradesh.
‘Raised objections at GoM’
Balag opal ’s office told TNIE that Kerala raised its objections at the GoM meeting. However, a section of officers feel that the state should have raised the matter at the GST council. “The objection is to be raised at the council meeting.
As per GST Act, the GST council is the mechanism for states to raise their views. The GoM is just a committee to facilitate the council,” said an officer. The state should have objected to the proposal at the council meeting that constituted the GoM and the 47th meeting where the final circular was issued, the officer said. Usually, states file written comments in reply to the agenda items of a council meeting which would be intimated in advance. In such cases, the council will be forced to acknowledge the comment.
Kerala’s opinions recorded in the minutes
Kerala raised objections at GoM, says FM office
K N Balagopal’s office told TNIE that Kerala raised its objections at the GoM meeting. The dissent was given in writing at the GoM meeting. The issue was not raised at the council meeting because, as per practice, the GoM chairman would report the committee’s recommendations and there would not be further discussions on it,” said an officer, adding that there was little scope for a change at that point of time.