Samajwadi Party opposes proposed GST law

New Delhi: Samajwadi Party (SP), which supports the United Progressive alliance (UPA) union government from outside, has opposed the indirect tax regime GST and said that north Indian state Uttar Pradesh has reservation over the new legislation as it will infringe upon sovereignty of states.
Naresh Agrawal, SP member in the Parliamentary Standing Committee on Finance, has given a note of dissent in the report submitted by the panel in Parliament last week to register the objections of his party and the state government ruled by it.
"The Standing Committee on Finance is sending its report on Goods and Services Tax (GST) to Government. Whereas Prime Minister and Finance minister are continuously giving statements that Union government is reconsidering over this, I have objected but you were adamant on sending your report," Agrawal has said in the dissent note addressed to panel's Chairman Yashwant Sinha.
"I am sending my objections as well as of Uttar Pradesh government," he has said.
The Constitution (115th Amendment) Bill, 2011 relating to Goods and Services Tax (GST) was referred to the Standing Committee in March, 2011 for detailed examination.
Raising objections on various counts on the proposed legislation that is intended to overhaul the indirect tax regime, the SP member has said, "Uttar Pradesh Government is totally against GST because due to this, Union Government will have direct interference in State Governments' head, which will be direct interference in sovereignty of States." 
He wanted to know how the central government will compensate the states in the next five years of the financial loss suffered by them due to implementation of GST.
Sinha, while submitting the report, had noted that the Committee have decided to pronounce its views on the Bill and fulfill its mandate, so that it is "not blamed for stalling the Bill".