Accepting GST was a blunder, Centre taking away ‘all the money’, says Mamata

West Bengal Chief Minister Mamata Banerjee on Monday (November 10, 2025) said that her government had made a “blunder” by accepting the Goods and Services Tax (GST) regime and demanded its withdrawal.

“I believe GST should be withdrawn. Ours was the first political party to support the idea. Amit Mitra (former State Finance Minister) had convinced me. The Centre is taking away all the money collected as tax… I believe the State’s collections should be returned,” Ms. Banerjee told reporters in north Bengal.

While the Chief Minister has occasionally accused the Centre of a “step-motherly” treatment and said that pending dues were not being released, this was the first time she has said that accepting GST was a “blunder”.

“They are taking the funds from us [and] are obliged to return the State’s money to the States. GST, State GST every penny is going to the Centre,” she said.

On September 22, the Union government revised the GST rates and adopted a simplified two-tier tax system, where the majority of goods and services is taxed at 5% and 18%, and a 40% tax is levied on ultra-luxury items. Ms. Banerjee had said that West Bengal would incur a revenue loss of nearly ₹20,000 crore due to the revised rates.

Funds to West Bengal for several schemes, including the MGNREGA and the PM Awaas Yojana, have been stopped by the Centre following allegations of corruption in their implementation. MGNREGA has been suspended in the State for almost three years now. However, after the Supreme Court on October 27 upheld an order by the Calcutta High Court to resume the scheme, there is some hope among agricultural workers that the 100 days’ work scheme will resume in the State.