GST bill to be tabled in Rajya Sabha today as Congress pledges full support

Except for the capping of tax rate, the government has accepted the two key demands of the Congress in the draft Bill.

New Delhi:

After marathon parleys to win the support of the Opposition parties, the government on Tuesday circulated the draft Goods and Services Tax (GST) Bill among the members of the Rajya Sabha, which would take up the discussion on the reform legislation on Wednesday.

Except for the capping of tax rate, the government has accepted the two key demands of the Congress in the draft Bill circulated among the members, which include doing away with one per cent additional tax, a definite provision in the statute for compensating states for revenue loss for five years, and the GST Council proposal to establish a mechanism for adjudication of disputes.

The business advisory committee of the Rajya Sabha had fixed five and a half hours for discussions on GST. Deputy leader of the Congress in the Rajya Sabha Anand Sharma told reporters that the draft GST Bill vindicated the party’s position on key issues. He claimed that the Congress was the original author of the GST Bill.

Congress to meet FM again While the Congress had sought a Supreme Court Judge-headed panel for resolving GST disputes, the official amendments say that the GST Council will establish a mechanism for solving disputes.

With regard to the demand for putting a GST rate cap in the Constitution, the government has not mentioned anything in the official amendments. Incidentally, finance minister Arun Jaitley, at a meeting with his state counterparts last week, had promised to keep the incidence of tax low while safeguarding the revenue of the states.

Meanwhile, Congress vice-president Rahul Gandhi on Tuesday met leader of the party in Lok Sabha Mallikarjun Kharge, former finance minister P. Chidam-baram and Mr Sharma among others and discussed various points regarding the GST Bill. Mr Sharma would meet the finance minister one more time to convey the Congress’ views on the Bill.

With the Congress coming in open to claim ownership of the GST and regional parties barring the AIADMK having been in support of the reform legislation, the prospects of the passage of the Bill appear to have brightened.

“We would list the Bill for consideration on Wednesday in the Rajya Sabha. We have talked to all parties and Prime Minister Narendra Modi had said at the beginning of this session that GST is in the interest of all. We hope the GST Bill will be passed with consensus,” parliamentary affairs minister Ananth Kumar told reporters after BJP Parliamentary Party meeting.

The GST Bill, which is officially called the Constitution (122nd Amendment) Bill, 2014) will lay the ground for rollout of Goods and Services Tax regime that will subsume all indirect taxes including Central excise duty and state VAT/sales tax.

Meanwhile, CPM on Tuesday refused to reveal its strategy on GST Bill, which will be tabled in the Rajya Sabha tomorrow, saying it will be dealt with on the floor of the House.

“What is coming on Wednesday in the Rajya Sabha is the constitution amendment bill to enable the GST Bill to be taken up in the House. When the GST Bill will actually come we will see,” CPI(M) General Secretary Sitaram Yechury said. On whether his party will support the amendment bill, he said, “It will come tomorrow, you will also know on Wednesday.”

(This story originally appeared on Deccan Chronicle)