Sushil Modi to head GST panel

After differing over almost everything for several months, including goods and services tax (GST), there is finally consensus between the Congress and the BJP on appointing Bihar deputy chief minister Sushil Kumar Modias the new head of the empowered group of finance ministry that is looking to usher in the biggest tax reform in the country. Sources said the BJP — which had earlier advised Modi against chairing the empowered committee — has now given the green signal for his appointment. His formal election would take place on Monday. Modi had emerged the top choice to replace West Bengal finance minister Asim Dasgupta, who headed the committee for over a decade but had to step down after the Left Front was voted out in the recent assembly elections. Over the last few days, Union finance minister Pranab Mukherjee had been trying to convince Modi and the BJP to ensure that there was some forward movement on the indirect tax reform initiative. The Centre was keen that a finance minister from one of the BJP-ruled states head the empowered committee as it would help build consensus. Modi’s colleagues said their go-ahead did not mean support to the Centre’s move to implement GST in its present form. “The opposition to GST is not from the party. Every state, be it Madhya Pradesh, Bihar or Gujarat, is looking at how the proposal affects it and is finalizing its position. There are no ideological issues. In fact, BJP supports GST,” said a senior party functionary. Leaders also said the committee was not dealing only with GST. They said there were pending issues on Vat and other tax-related matters. The committee was used during the discussions on the Thirteenth Finance Commission.