it is purely based on recommendations of Finance Commission
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Aditya Raj Das
Finance Minister Nirmala Sitharaman today clarified that centre has nothing to do with the tax devolution of some states as it is purely based on the recommendations of the Finance Commission. Sitharaman said, the Centre has no right or any role to play in this matter and this apprehension that some States are discriminated is a politically vitiated narrative.
She was replying to supplementaries in the Lok Sabha during the Question Hour on Congress leader Adhir Ranjan Chowdhury’s allegations that injustice has been done to Karnataka and other non-BJP ruled states by the Central government with reduction in tax devolution. The Minister underlined that the system with regard to the tax devolution is well placed and she does not have any discretion to play around with Finance Commission recommendations.
She said the Commission meets different stakeholders and then submits its recommendations. Ms Sitharaman added that the GST, particularly the SGST goes 100 per cent to States, while the IGST is collected because it involves a lot of interstate payments and it is periodically reviewed. She also said that it is fifty per cent grossly divided and periodically adjusted. The Minister said, the CGST is divided as per the advice of the commission and rate fixation has nothing to do with the Centre.