West Bengal Chief Minister Mamata Banerjee on Wednesday signalled a possible rethink on the Goods and Services Tax (GST) regime if there is a “change of guard” at the Centre, delivering one of her sharpest critiques yet of the indirect tax system introduced by the BJP-led government and supported by her party at the time.
Speaking at the Bengal Global Business Conclave in Kolkata, Banerjee said GST, which was projected as a reform for development and transparency, has instead become a burden for states and businesses, particularly small traders. While stopping short of announcing any immediate move, her remarks carried political weight as she suggested that the tax structure itself could be revisited in the future.
“The state government doesn’t collect any tax. There’s only one tax now - that’s GST,” Banerjee said. “Earlier we thought this will be good for the nation, but no. The Centre is collecting all the money and never giving us our dues.”
Banerjee acknowledged that the Trinamool Congress had backed the GST when it was rolled out, crediting former state finance minister Amit Mitra for persuading her to support the reform. “It was Dr Amit Mitra who had convinced me to support GST,” she said, adding that the expectations attached to the new system had not been met.
The chief minister accused the Union government of using selective publicity to mask what she termed a deeper fiscal injustice. Referring to the Centre’s recent announcements on GST relief for health insurance, Banerjee said, “Publicity is going by saying they have removed GST from health insurance, dismissing that it was they who had imposed GST on insurance at the first place.”
She alleged that the Centre was simultaneously withholding large sums from states. “On the name of publicity they are shielding the fact that they are taking away Rs 20,000 crore from the state and then they are excusing GST on insurance,” Banerjee said. According to the state government, West Bengal has been deprived of more than Rs 1 lakh crore in central funds over the years, including pending dues under social security schemes such as MNREGA due to ‘political vendetta’ - a charge the Centre has consistently denied.
Calling GST a “pain” rather than a gain, Banerjee said the system has failed on its stated objectives. “The GST was for development, economic sustainability and accountability, but now it’s just like a fraud. You tell me if there is a pain or a gain,” she remarked.
Beyond fiscal issues, the chief minister launched a strong attack on central investigative agencies, accusing them of creating an atmosphere of fear among entrepreneurs. “One small businessman cannot operate under fear of agencies. Businessmen are being harassed by the agencies. People are afraid,” she said, in a pointed reference to raids by agencies such as the ED, CBI and Income Tax Department.
In a line that drew applause from the audience, Banerjee added, “Nobody knows what sun would rise — whether sun would rise or agency would arise.” Arguing for minimal state interference in commerce, she said, “Let the industrialists be free to take their own decisions and do business without fear. It is not the duty of the government to interfere in every business. We want freedom for the industrialists, we want freedom for small businesses. Let them grow.”
Ending on a politically loaded note, Banerjee hinted at future changes if circumstances permit. “If any opportunity comes, I can assure you that we will do that,” she said - a remark widely interpreted as a signal that GST itself could be revisited if there is a change in power at the Centre. Her comments are likely to intensify the ongoing Centre–state confrontation over fiscal federalism, GST compensation and the role of central agencies, while also setting the tone for a broader political debate ahead of the next general election.
