Modi government has delayed GST implementation: Congress

New Delhi: The Congress on Friday hitting out at the Narendra Modi-led central government said it has delayed implementation of the Goods and Services Tax (GST) for more than three years.

"There is lots of confusion because they say they will launch GST from July 1. The GST network rejected CAG's request to name auditor and do an extra audit. This has had sad reflection with regard to preparedness to launch the GST," said senior Congress leader and MP Veerappa Moily.

He also said that VAT Income of all the states has declined sharply. 

"This is mainly because of the demonetisation and also due to various other factors. Naturally, as far as the GST is concerned, it is said by many economists that for another 2-3 years, GST revenues will be decelerating in all the states. The states will be badly hit," he added.

Moily said: "This has not been envisaged by the Finance Minister (Arun Jaitley). No provision whatsoever has been made in the present budget for meeting such challenges. That means they are most insensitive for implementing a very important enactment like GST." 

"The blame should go to the present government, which has delayed implementation of GST for more than three years," he added.

Further commenting on the budget, Moily said it reflects the sad affair of the allocations to the defence sector. 

"They have surrendered Rs 7,000 crore of capital budget of 2016-17, which underlies the structural incapability of this government to spend even the inadequate allocation." 

"They do not do anything to strengthen the capabilities of their establishments. India faces conventional war challenges from Pakistan's F-16s and rapidly modernizing Chinese Air Force," Moily added.

He noted: "The capital outlay has decreased in the fiscal year 2017-18, to Rs 10.5 billion that means 5 per cent decrease from the previous year. This will decelerate military modernization and preparedness."