The Andhra Pradesh government today said the Centre 'grossly failed' in effectively implementing the Goods and Services Tax (GST) and accused it of 'sidetracking' the new taxation system.

It demanded that the Centre review the various slabs in GST and ensure that traders did not face any problems with the new structure. Speaking in the state assembly on a short discussion on implementation of GST, Finance Minister Yanamala Ramakrishnudu noted that India's growth rate fell because of the 'faulty policies' of the Centre, including GST and demonetization.

The Centre grossly failed in effectively implementing the GST, while the note ban was also not done in a proper manner. "The country's growth rate fell by two per cent because of the note ban, while ordinary people are facing cash crunch with the ATMs remaining empty," Yanamala said.

Even the Real-Estate Regulation Act enacted by the Centre was chaotic, he said. "Industries and services sectors could not achieve growth because of the faulty policies of the Centre.

That, in turn, has been impacting the country’s overall economic growth," Yanamala observed. The Centre, which took away the states' power to levy taxes, has now sidetracked the actual GST, he alleged.

"There is a vast difference between GST in different countries and our country. GST in New Zealand is the best in the world as there is only one slab. There is need for review of the GST slab system here as well," Yanamala added.

He said the Centre, ahead of enacting the GST law, agreed to bear the revenue loss of states due to GST, but was now collecting special cess and giving it to the states.

"The Centre is accepting some proposals of the states and rejecting some others,which is causing hardship to the people. The states are also facing problems because of that,"he noted. The TDP government, Yanamala said, was strongly opposed to bringing traders 'forcibly' into the tax net.

"Under the Value-Added Tax system, there was no scope for arrest of traders but GST has that. We strongly opposed that," he said.