Clean environment cess on coal for compensation to states has been opposed by Odisha.
The Odisha government today opposed the GST Council's decision to continue with the clean environment cess on coal and demanded enhancement of the rate of royalty on coal.
"The Odisha government has always been of the view that the cess will distort the GST structure. Therefore, the decision to continue with the clean environment cess on coal etc for compensation to all states has been opposed by us," an official statement issued by the chief minister's office said.
The state government would continue to pursue the central government for enhancing royalty on coal-bearing states instead of the same being shared for compensating all the states for introduction of GST, it said.
The Odisha government, however, welcomed the GST Council's decision to impose no tax or the lowest possible tax on daily consumer goods.
"The state government, therefore, welcomes zero tax rate on common food items and reduction in tax rate from 6 per cent to 5 per cent by the GST council, as demanded by the state government," it said.
The government also welcomes the decision of the GST Council to recommend compensation by the central government to the state on the implementation of the GST with 14 per cent growth on collection of tax for the base year 2015-16, it said.