The Finance Ministry has clarified the reason why Sushil Modi, the deputy chief minister of Bihar, has replaced Finance Minister Nirmala Sitharaman as the convener of a Group of Ministers on Integrated Goods and Services Tax (IGST), as per CNBC-TV18.

The finance minister cannot head the panel since she is the chairperson of the GST Council, it said.

Sources earlier revealed on December 11 that the finance minister was ‘inadvertently’ named as the convenor of the panel. It happened after Sitharaman had had a meeting with deputy chief ministers of Puducherry and Delhi, and finance ministers from Rajasthan, Madhya Pradesh and Punjab on December 4.

The GoM will deliberate on IGST issues of the states and submit its recommendations to Sitharaman.

A modification has been made late Tuesday evening to the constitution of GoM on IGST making Sushil Modi its convener, they said.

Last week, finance ministers and representatives of opposition-ruled states met Sitharaman and expressed their concern over delay in release of GST compensation which has put them in an acute financial position.

The finance ministers of Delhi, Punjab, Puducherry and Madhya Pradesh and representatives of Kerala, Rajasthan and Chhattisgarh attended the meeting over the delay in payment of compensation.

Source: Money-Control.

Get Your GST Returns Filed Easily and
Effortlessly!!!

Our GST software enables you to file your GST returns free of any hassle. Get more details by writing to us at gst@xattax.in.