GANDHINAGAR: Narendra Modi-led Gujarat government has opposed the UPA government 's attempt to pass the 115th Constitution Amendment Bill, 2011 to forcibly enact goods and service tax ( GST ) regime in the country.

The opposition was aired during national empowered committee meeting on Monday at New Delhi.

Cabinet minister Saurabh Patel, who represented Gujarat at the meeting, said, "If the Union government through an ordinance enacts the GST regime, Gujarat will have to bear Rs 14,000 crore loss per annum due to the destination based taxation principle."

Patel said that Gujarat is facing a severe problem of realization of revenue due to economic slowdown. "Yet the Centre has not yet released the pending compensation of Rs 4,500 crore. This issue should be resolved instead of moving towards the constitution amendment. As suggested by the standing committee, broad consensus has not been arrived at on key issues concerning the implementation of GST," he said.

The issues listed by him were revenue neutral rate, place of supply rules for goods and services, dual control, exemption, compensation, among others.

He said the committee is of the opinion that before proceeding to enact the constitution bill 2011, broad consensus on key issues concerning the implementation of GST should be arrived at between the Centre and the state governments.

Patel added, "The adequate groundwork would thus be essential before setting upon to operationalize the proposed GST regime. Keeping in view the apprehensions expressed by states, a credible study would also be required to evaluate the impact of GST regime on the revenues of the states. All these key issues are between the centre and the state governments and not among the ruling parities in different states and the Centre."

