MUMBAI: Maharashtra’s deputy chief minister Ajit Pawar skipped the GST council meeting on Friday citing urgent engagements and Ganeshotsav, a day after he had criticized the Centre for organizing a physical meeting during the pandemic.
In a letter to Union finance minister Nirmala Sitharaman dated September 15, he also opposed bringing petrol and diesel under the GST regime.
“As petrol, diesel and other petroleum products have a major contribution to the state exchequer, these products should be continued out of GST as per the existing tax structure,” said Pawar, who holds the finance portfolio. He added in the GST regime, the state’s ability to raise additional finances was limited. “However, in cooperative federalism, states require additional finances for taking up developmental activities and to accelerate the growth of the state’s economy,” his letter said.
Pawar also requested GST compensation dues to states be settled and the compensation period be extended for another five years beyond June 2022. He asked for the revenue of states to be protected with an increment of 14% each year in keeping with the present arrangement.