Jaya meets Modi, says GST impacts fiscal autonomy of states like Tamil Nadu

Tamil Nadu Chief Minister J Jayalalithaa met Prime Minister Narendra Modi on Tuesday and told him the proposed Goods and Services Tax would impact the fiscal autonomy of states like Tamil Nadu. Jayalalithaa’s remark came shortly after finance minister Arun Jaitley said every state either supported or accepted the proposed move except Tamil Nadu, which expressed its reservations and offered suggestions.
The Tamil Nadu CM submitted a memorandum of 29 demands to the PM, television channels reported. “GST impacts the fiscal autonomy of states like Tamil Nadu… Expect big revenue loss for manufacturing state like Tamil Nadu,” Jayalalithaa said in the memorandum, according to NDTV. “The Centre should accept the AIADMK’s amendments to the GST Bill,” the memorandum said.
“A number of concerns of Tamil Nadu need to be addressed by the Centre on GST… petroleum products must be kept out of GST,” it added.
The proposed tax reform, the country’s biggest revenue shake-up since independence, seeks to replace a slew of federal and state levies, transforming the nation of 1.3 billion people into a customs union.
This was Jayalalithaa’s first visit to the national capital since winning the second consecutive term in Tamil Nadu after the AIADMK secured a thumping victory in the assembly polls that concluded last month.
Jayalalithaa, when she called on Modi on June 3, 2014 immediately after he took over as Prime Minister, had flagged the state’s concerns over many issues including the GST.
A meeting between the two took place last August when Modi had visited Tamil Nadu. He called on Jayalalithaa at her Poes Garden residence breaking protocol and she had submitted a memorandum comprising several state specific requests to him.

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