Modi government has finally decided to list the all important GST (Goods and Services Tax) Bill for consideration and passage in the Rajya Sabha next week.
Modi government has finally decided to list the all important GST (Goods and Services Tax) Bill for consideration and passage in the Rajya Sabha next week. Union Minister MA Naqvi informed the Rajya Sabha that government will list the GST bill in Parliament’s upper house for next week. The indirect tax measure is seen as a big economic reform, and is expected to provide a big boost to India’s GDP growth. In a bid to push the big reform, that has been pending in Rajya Sabha for quite some time now, PM Modi-led Cabinet has cleared changes in the GST Constitutional Amendment Bill and dropped the 1% manufacturing tax clause.
The government has also provided guarantee that it will compensate states for any resulting revenue loss in the first 5 years of rollout of GST. By doing away with this 1% tax, Modi government has met one of the three key demands over which Congress has been blocking the GST Bill in Rajya Sabha. Once the Rajya Sabha approves the legislation, the amended Bill will have to go back to the Lok Sabha again for approval. The monsoon session of the Parliament ends on August 12.
On Thursday, FM Arun Jaitley and CEA Arvind Subramanyam held many rounds of talks with leaders of Congress and other parties including the Samajwadi Party, JD(U) and CPI(M). Five parties, including the Left, have asked the Centre to assure states that their financial needs will be taken care of before the GST Bill is brought. These parties allege that the Bill seeks to take away states’ right to raise resources.