Ahead of the GST Council meeting, Chhattisgarh minister for panchayat and rural development T.S.Singh Deo wrote a letter to FM Nirmala Sitharaman pressing for an extension of the compensation cess — which assures 14 per cent protected revenue increment every year on a 2015-16 base year. The cess ends on June 30.

“The provision for 14 per cent protected revenue will be ceasing from June 30. This must be continued at least another five years, because mining and manufacturing states, who are not consumers, will suffer a great loss of revenue,” he said in his letter to the FM.

Singh Deo illustrated his point with a table setting out the difference between the erstwhile VAT and current GST regime with respect to 10 items. He claimed that Chhattisgarh suffers a loss of Rs 2,786 crore in 2018-19 on just 10 items including iron and steel, coal and paddy.

The overall revenue loss the state suffered following the switch to GST has been calculated at Rs 4717 crore in 2021-22, up from Rs 3,620 crore in 2020-21, he added.

Chhattisgarh also suggested a fresh look at SGST/ CGST sharing formula if the 14 per cent compensation to states was not extended. It has suggested state GST at 70-80per cent and central GST at20-30 per cent from the present 50:50. Recalling the recent Supreme Court judgment regarding the power of the GST Council, Singh Deo said“Unless we in the GST Councilunilaterally ensure the financial stability through rationalthe very concept for which theGST Council was put in place may appear to be untenable.”

Mitra view

In another letter, Amit Mitra wrote to the FM to take decisions at the ongoing GSTCouncil meeting by consensus, shunning “majoritarianism”.

Mitra, the principal chief adviser to chief minister Mamata Banerjee and the finance department, cited the recent judgment of the Supreme Court on the GST in this regard.

“Post decision of the SC, it has become imperative for the GST council to take every decision by consensus and to leave aside any shade of majoritarianism,” he said.

Move by states

• Chhattisgarh wants state revenues to be protected through cess by 5 years

• Chhattisgarh wants state revenues to be protected through cess by 5 years

• Share of GST proceeds must go up to 70-80%