GST hope rides on PM-Sonia high tea

Prime Minister Narendra Modi reached out to the main Opposition Congress on Friday — the first time in the last 18 months — for the latter’s support on the Goods and Services Tax Bill and smooth functioning of Parliament. However, the Congress remained noncommittal on backing the bill, saying the government’s response to its concerns would be discussed within the party.

Congress chief Sonia Gandhi and former PM Manmohan Singh met Mr Modi at his official residence here Friday evening for about 45 minutes. Finance minister Arun Jaitley and parliamentary affairs minister M. Venkaiah Naidu were also present at the meeting. The first official contact comes against the backdrop of the Bihar polls, the washed out Monsoon Session of Parliament and dissension in the ruling front.

The government will establish “fresh contact” with the Congress once the latter completes its internal discussion on “their concerns” on three issues on which they made their position clear, Mr Jaitley told reporters after the meeting.

Mr Modi had invited Dr Singh and Mrs Gandhi to tea at his residence where the discussions covered issues pending before Parliament, particularly the large number of bills that have accumulated over the past two sessions.

Mr Jaitley said the Congress leaders put forward their position with regard to the three issues which they felt were of concern to them.

The Congress’ three issues are — a demand for specifying the proposed 18 per cent rate in the Constitution amendment bill, opposition to the additional one per cent levy on inter-state movement of goods and 100 per cent compensation to states for revenue loss for five years.

“The history and the background of the legislation and the government’s response to these issues in detail were also explained to them. The Congress leaders will be discussing within their own party and there would be, after some time, fresh contact between the government and them to discuss this subject further, after they have discussed within the party and we have also considered the position that they have brought to us,” Mr Jaitley said.

The finance minister said Mr Naidu would be in touch with Congress leaders in both Houses (Mr Ghulam Nabi Azad and Mr Mallikarjun Kharge) to discuss specific legislation pending in Parliament so work can proceed next week.

The GST Bill has been stuck in the Rajya Sabha where the BJP-led National Democratic Alliance lacks the numbers to ensure its passage.

Earlier, Congress vice-president Rahul Gandhi told reporters, “This meeting is happening after public pressure. This is not the way he functions.”

After the meeting, Congress leader Anand Sharma said, “Our demands are non-political, we’re only thinking in the nation’s interest and want a GST which is meaningful.”