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EDITORIAL 31 May 2021 THE HINDU STORM AND STRIFE EDITORIAL THE CENTRE AND THE WEST BENGAL GOVERNMENT MUST NEGOTIATE THEIR RELATIONS IN GOOD FAITH The conflicting versions of the BJP and West Bengal Chief Minister Mamata Banerjee regarding a meeting called by Prime Minister Narendra Modi on Friday to review the situation after Cyclone Yaas cannot be glossed over as miscommunication. BJP leaders, including Union Ministers, went to great lengths to show Ms. Banerjee in a bad light over the meeting. They said she made the PM wait for 30 minutes at Kalaikunda in Paschim Medinipur district in south Bengal; and once she arrived, she handed over certain papers and left without attending the meeting. Governor Jagdeep Dhankhar accused the CM publicly of being confrontational. In an unprecedented act, the Centre unilaterally placed the West Bengal Chief Secretary under central deputation. Considering the fact that no concurrence of the official in question or the State government was sought, this can be seen only as a vindictive move. Ms.Banerjee has said that she had sought the PM’s permission before going about her schedule to oversee relief operations in other parts of the State. While offering to even touch the PM’s feet if that was required to secure the support of the Centre for the State’s welfare, she has questioned the BJP version and pleaded that the CS be allowed to stay in the post. Ms. Banerjee said she was delayed for the meeting with the PM only because of air traffic regulations for the landing of the PM’s aircraft. That there is such acrimony between the State and the Centre at a time when both must be working hand in hand is extremely disheartening for the people of West Bengal. But there can be no equal apportioning of blame in this. By calling Mr. Dhankhar and Leader of Opposition Suvendu Adhikari to the meeting, the Centre had already betrayed its plans to belittle the CM, who has won a resounding third term recently by trouncing the BJP. In Odisha on the same day, and in Gujarat earlier, the PM reviewed the situation with the CMs, and not Opposition leaders. It is apparent that the BJP has not been able to stomach the popular verdict in Bengal. The defeat could have been an occasion for the BJP to introspect and mend its strategy for West Bengal. Far from it, the Centre unleashed the CBI against the newly elected Trinamool Congress Ministers. Mr. Adhikari, the PM’s interlocutor on Friday, remains untouched by the CBI though he is an accused in the same case. Now, by dragging a senior IAS officer who has just been cleared for a three month extension after retirement on May 31, into a nasty political tussle, the Centre has crossed yet another red line. The BJP must wake up to the tradition of Centre and States constantly negotiating their relations in good faith. It must also get used to the reality of losing elections in a democracy. THE HINDU SWEATING THE SMALL STUFF EDITORIAL THE GST COUNCIL LEAVES WEIGHTIER ISSUES HANGING FIRE; SETS STAGE FOR MORE ACRIMONY The GST Council, which met last Friday, could not live up to the expectations of some meaningful relief from the disastrous second wave of the pandemic. The measures unveiled were insipid, be it for the common man hoping to survive while keeping fingers crossed for a vaccination slot or a hospital bed, or businesses hurting from lockdowns, and States grappling with a cash crunch amid a scramble to purchase vaccines. Finance Minister Nirmala Sitharaman announced an elaborate amnesty scheme for small firms pending GST returns, lowered the interest levied on late payments for recent months, and extended several compliance timelines. But there is little respite for businesses with turnover of over ₹5 crore, and industry is underwhelmed. No discussion occurred on bringing fuels under GST, despite the Centre’s noises to that effect amid runaway petrol prices. Taxes on COVID essentials remain unchanged, despite States and industry pressing for waivers. Ms. Sitharaman said the subject dominated deliberations but ‘varying viewpoints’ compelled her to let a Group of Minister's pore over possibilities of rate cuts. The GoM has to report back by June 8, but the Council, constitutionally empowered to recommend special rates during a disaster, would still have to concur. Thus, no immediate relief can be expected. Opposition States allege that NDA -ruled States’ representatives in the Council vociferously opposed waiving the GST on COVID vaccines and drugs. Tax mavens have mooted ways to implement such cuts, so it is unfortunate that the Centre, usually so conscious of optics, came to the table with little to offer. GST breaks offered on free COVID- related imports from abroad for donation to State -approved entities, were extended to material imported on a payment basis as well. It is not clear why this had to wait for the Council — BJP -ruled Gujarat and Haryana have already offered GST refunds on such imports. A ₹1.58 -lakh crore borrowing plan may quell States’ concerns about immediate compensation dues, but larger schisms are apparent that could fray the Council’s functioning further after recent acrimonious parleys. Sikkim, for instance, has demanded that it be allowed to levy its own cess to cope with falling revenues, a demand that has been backed by others, including Tamil Nadu and Arunachal Pradesh. This could virtually derail the very edifice of GST subsuming all local levies, even as States now want to be recompensed beyond next year. The Centre, facing flak for its handling of the second wave, could do with a more responsive approach. Winning an intellectual or ideological battle over taxes on COVID essentials is meaningless at this precarious time, when each day’s delay in providing relief hurts thousands. Small gestures with limited revenue implications would give the Centre more room to strike common ground with States on the challenges that loom over the GST regime..
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