In a bid to break the deadlock between the Centre and some states on the proposed Goods and Services Tax (GST) finance minister Pranab Mukherjee reached out to leader of the Opposition in the Lok Sabha Sushma Swaraj to help end the impasse. Speaking to FE, Swaraj said finance minister Pranab Mukherjee had asked her for help in persuading BJP ruled state government to embrace the new GST regime. ?I will be calling for a meeting of all chief ministers and finance ministers of NDA ruled states as soon as the finance minister reverts to us with his proposed Constitutional Amendments for GST,? she said.
Some BJP-ruled states such as Madhya Pradesh have been vehement in their opposition to the proposed Constitutional Amendment proposed for GST, especially dealing with the Centre?s veto power with regard to the state?s right on state GST.
?We haven?t gone into the finer details of the matter although in a previous meeting of chief ministers of NDA ruled states we heard all their grievances with regard to adding of petroleum products to the GST list and also the Centre?s veto power,? she said.
Sources confirm that the finance minister is keen to introduce the Constitutional Amendments in this parliamentary session itself, so that the matter may be referred to a standing committee. ?By the Winter Session therefore, a report can be expected, after which it will go to an administrative committee, and considered and cleared in the Budget Session, to meet the deadline of an April 2011 roll out,? said a source in the government.
The GST will involve significant Constitutional Amendments, which require to be cleared with two thirds majority in both Houses of Parliament.
Opposition support therefore is crucial. ?This will change the whole financial administration of the country and we are going to take a considered view on the matter,? Swaraj said.