The GST Council chaired by Union finance minister Nirmala Sitharaman was supposed to be held its 56th meeting for two days - September 3 & 4, but it ended up on September 3 itself
New Delhi: As per the schedule, the GST Council chaired by Union finance minister Nirmala Sitharaman was supposed to be held its 56th meeting for two days -- September 3 & 4, but it ended up on September 3 itself, turning into a high-stakes late-night battle with opposition-ruled states digging in their heels and the finance minister refusing to let the matter slip to the next day. The government had done its homework well in advance. For six months, Sitharaman had held back-to-back meetings with different groups, laying the groundwork for GST rate cuts, according to the top sources.
"Prime Minister Narendra Modi’s instruction was clear that the middle class and poor must get relief, and that decision had to be implemented without delay. Even top ministers including home minister Amit Shah also convened separate meetings to ensure no political row later over taxation of sensitive items and to reassure states on revenue concerns. Ahead Bihar election battle, the government wanted to provide a big relief for common man as it was promised by prime minister on his Independence day speech" the sources said.
But when the council members gathered, the consensus was anything but easy. However, sources said opposition-ruled like West Bengal, Punjab, Kerala, and Karnataka strongly opposed rate cuts, citing fear of revenue loss. "The meeting, slated to end by 7 pm, dragged late into the night, stretching beyond 10 pm. While Punjab and West Bengal eventually softened their stance, Kerala and Karnataka held firm, insisting on concrete assurances from the Centre on compensation. Some even pressed that the decision be postponed till the next day," the sources said.
However, sources said that Sitharaman drew a hard line. "She told the gathering she was ready to sit through the night if needed, but relief for the people could not wait another day. The deadlock tested the patience of other states. She also told the members, in line with the prime minister's commitment, she did not want to drag it for another day. All the beneficiaries should get the relief as soon as possible," she said.
