His remarks came a day after Modi flagged higher fuel prices in many opposition-ruled states and urged them to reduce VAT in “national interest” to benefit the common man and work in the spirit of cooperative federalism in this time of global crisis.

Gandhi alleged that the prime minister is abdicating his responsibility by blaming states for the high fuel prices even when the Centre has taken 68 percent of all fuel taxes.

“High Fuel prices – blame states. Coal shortage – blame states. Oxygen shortage – blame states,” he said in a tweet.

“68% of all fuel taxes are taken by the Centre. Yet, the PM abdicates responsibility. Modi’s Federalism is not cooperative. It’s coercive,” Gandhi charged.

Modi had raised the issue of many states not adhering to the Centre’s call for reducing the Value Added Tax (VAT) on petrol and diesel after his government slashed excise duties on them in November last, and called it “injustice” to people living there and also harmful for neighbouring states.
Flagging higher fuel prices in many opposition-ruled states during a meeting on Covid, PM Modi called it “injustice” and urged the Chief Ministers to reduce VAT (Value Added Tax) on petrol and diesel to help the common man. He said many states had not agreed to the Centre’s call for reducing VAT after his government slashed excise duties in November and named Maharashtra, West Bengal, Telangana, Andhra Pradesh, Kerala, Jharkhand and Tamil Nadu.

Reacting to the furious backlash from opposition Chief Ministers, Union Minister Hardeep Puri sneered that petrol would be cheaper if opposition states reduced taxes on fuel instead of liquor.

“Petrol will be cheaper if opposition ruled states cut taxes on fuel instead of imported liquor! Maharashtra govt imposes ₹ 32.15/litre on petrol and Congress-ruled Rajasthan ₹ 29.10. But BJP-ruled Uttarakhand levies only ₹ 14.51 and Uttar Pradesh ₹ 16.50. Protests cannot challenge facts!” – Mr Puri tweeted this morning.

The swipe landed as Telangana Chief Minister K Chandrasekhara Rao remarked that the Prime Minister “should feel ashamed” to ask states to cut taxes and stressed that there had been no hike in fuel tax since 2015 in his state

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1. The Central Goods and Service Tax Act, 2017 (No.12 of 2017) to be amended as Central Goods and Service Tax (Amendments) Regulation, 2020;
2. The Union Territory Goods and Service Tax Act, 2017 (No. 14 of 2017) to be amended as Union Territory Goods and Service Tax (Amendments) Regulation, 2020;
3. The Dadra and Nagar Haveli Value Added Tax Regulation, 2005 (No.2 of 2005) to be amended as Dadra and Nagar Haveli and Daman and Diu Value Added Tax (Amendments) Regulation, 2020;
4. The Daman and Diu Value Added Tax Regulation, 2005 (No.1 of 2005) to be repealed as Daman and Diu Value Added Tax (Repeal) Regulation, 2C20;
5. The Goa, Daman and Diu Excise Duty Act, 1964 (No.5 of 1964) to be amended as Dadra and Nagar Haveli and Daman and Diu Excise Duty (Amendment) Regulation, 2020;
6. The Dadra and Nagar Haveli Excise Duty Regulation, 2012 (No.1 of 2012) to be repealed as Dadra and Nagar Haveli Excise Duty (Repeal) Regulation, 2020.
7.  Designation of Daman as Headquarter of Union Territory of Dadra and Nagar Haveli and Daman and Diu.

These amendments will lead to “Minimum Government, Maximum Governance” by way of having common taxation authorities: better delivery of services to the citizens by reducing duplication of work and improving administrative efficiency, will help in bringing more uniformity in Laws relating to GST, VAT and STATE EXCISE and it will also help to avoid any legal complications in the levy and collection of GST Tax, VAT, State Excise, including recovery of arrears Moreover, the said amendments not only bring uniformity in taxation laws but also strengthen the system of laws.

The U.T. Administration of Dadra & Nagar Haveli and Daman & Diu have taken a big step to realize vision of “Minimum Government, Maximum Governance” for the people of the two UTs, besides saving to government exchequer and ensuring uniformity, stability and consistency in day to day functioning of taxation authorities. This is achieved by making Amendments/extension/repeal in Acts dealing with Goods and Services Tax (GST), Value Added Tax (VAT) and Excise, and by designation of Daman as Headquarters of UT of Dadra and Nagar Haveli and Daman and Diu in view of merger of Dadra and Nagar Haveli and Daman and Diu on appointed date of 26.01.2020.

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