Each and every state will be compensated for any revenue loss on account of switch to the Goods and Services Tax (GST), union finance minister Arun Jaitley asserted while speaking at an investment summit in the city.
"Each and every state will be compensated. All instalments will be paid in time," said Jaitley. He was speaking at the inaugural session of the two-day Bengal Global Business Summit.
The finance minister also said that he was certain West Bengal will gain in revenue after the switch to GST. "Bengal is a high consuming state and therefore, should benefit from GST."
The Narendra Modi government is committed to switching over to the GST from April 1, 2016.
The all-embracing tax is supposed to replace indirect taxes on goods and services, and has often been described as the most crucial tax reform since Independence.
Bengal finance minister Amit Mitra welcomed Jaitley's assurance that GST will add to the coffers of the state government.
In his speech, Jaitley also mentioned Bengal has a narrow manufacturing base. He also remarked that it is not enough to have good intent, but investors should be demonstrated that they can make good profits.
However, the finance minister also promised that the Centre would stand behind the Mamata Banerjee administration to ensure that the money invested in West Bengal is not wasted.