The crucial Goods and Services tax (GST) Bill was passed unanimously in the Lok Sabha with amendments proposed by the Rajya Sabha.
The crucial Goods and Services tax (GST) Bill was passed unanimously in the Lok Sabha with amendments proposed by the Rajya Sabha. Prime Minister Narendra Modi described GST as important step towards ending tax terrorism, reducing corruption and black money. Modi said, in this new tax regime consumer will be the ‘king’. Modi went on to thank all political parties for their support. Finance Minister Arun Jaitley countered Opposition’s questions on the GST Bill. Claiming flaws in the draft bill proposed during UPA regime, Jaitley said his government has rectified all flaws and is moving towards efficient system and improving federal structure of India. The bill aims at providing the country with ‘One India One Tax’ system. It was passed by the Upper House by 203 votes against nil as the ruling and opposition parties put on display a rare bonhomie. Though the AIADMK had staged a walkout during the debate in the house.
BJP and Congress have already issued whip to its Lok Sabha MPs to remain present during the crucial debate on the bill. If the Lok Sabha passes it, the bill will go to state assemblies for ratification. Once the amendments are approved, Lok Sabha will pass the GST and Integrated GST Bills and the state assemblies will pass the state GST Bill. All the chief ministers have assured government for their support and said that they will call a special session for passage of the bill as it required at least 16 states to approve it within 30 days of passage from the Lok Sabha.
8.20 pm: We earlier had three major differences on GST, we’ve worked that out. Still have one issue on 18% cap, which will be discussed in December: Rahul Gandhi
8.00 pm: Amended GST Bill passed in Lok Sabha with unanimously
7.54 pm: Lok Sabha votes on Constitutional Amendment Bill
7.50 pm: Amendment 17 – Noes have it.
7.49 pm: Amendment number 4: Motion carried by the majority
7.43 pm: Amendments 1 and 2 made by Rajya Sabha put to vote. Ayes 435. Nos: Nil. Motion carried.
7.42 pm: Ayes: 429. Nos: Nil. Motion carried
7.40 pm: Amendments made by Rajya Sabha are being taken into consideration
7. 36 pm: Constitutional Amendment Bill (122nd) is put to vote.
7.32 pm: AIADMK stage a walk-out
7.21 pm: Alcohol was a deal-breaker, hence exempted from the purview of GST: Arun Jaitley
7.18 pm: The reason why corporate taxes are coming down world over, is that the highest amount of personal tax is coming from the wealthy. The money is for the corporates to reinvest surplus income. If you keep the corporate tax unduly high, the investors will look for places where there the tax rate is low to invest. Who created this idea? Not me. The Direct Tax Code brought in by the UPA government
7.16 pm: On the basis of GST Council’s conclusion, it will be determined whether it is a Financial Bill or Money Bill: Finance Minister Arun Jaitley
7.14 pm: Both State’s and Centre’s views will be brought before GST Council. It will ultimately be the GST Council that will make draft laws on IGST/CGST: Finance Minister Arun Jaitley
7.08 pm: We need a strong Centre and strong states: Finance Minister Arun Jaitley
7.07 pm: So many Indian entrepreneurs set up business elsewhere for various reasons. One of the reasons include ease of doing business: Finance Minister Arun Jaitley
7.05 pm: On 80% of products, total Centre and State taxes go up to 27% now. We will rationalise this and reduce the tax rate: Finance Minister Arun Jaitley
7.00 pm: Thambidurai had asked – What happens after 5 years if there is a continuous loss of taxation? – Sir, we are moving towards a more efficient system that is going to plug leakages and corruptions. The base of taxation itself is going to expand, evasion is going to be plugged. The quantum of tax raised is going to increase. And additionally, the States are also going to be able to levy a tax on services. For eg, if TN is a manufacturing state, the service tax of Chennai will go into your kitty. So there is an additional tax. This fear is exaggerated: Finance Minister Arun Jaitley
6.57 pm: Questions have been raised about sovereignty and authorities of the State, are we surrendering that? You are shifting to a new mechanism. You are moving away from the present system, where there are separate components. Once you take up the GST, the State and the Centre will have to interact. None of us are going to be surrendering our sovereignity, we are going to be pooling our sovereignty to address issues: Finance Minister Arun Jaitley
6.55 pm: GST will reduce tax evasion, improve business environment: Finance Minister Arun Jaitley
6.52 pm: The entire standing committee felt that tax disputes between States was a political issue, so it should be resolved politically: Arun Jaitley
6.50 pm: We are moving towards efficient system through GST: Arun Jaitley
6. 45 pm: GST Bill will improve federal structure of India: Finance Minister Arun Jaitley
6.42 pm: The GST Bill introduced by the UPA government focused on building a consensus, did not have a provision for compensation to manufacturing states: Arun Jaitley
6.40 pm: The one which you called a ‘flawed bill’ was based on the bill drafted during your (UPA) time: Arun Jaitley
6.37 pm: I want to thank all political parties and MPs for taking part in this discussion: Arun Jaitley
6.37 pm: Finance Minister now responds to questions put forward by Opposition in the Lok Sabha on GST
6.35 pm: Most of the things that can impact consumer inflation have been kept out of the ambit of GST: PM Modi
6.33 pm: Our aim is “Economical and educational empowerment of the poor”. GST can help us achieve this aim: PM Modi
6.31 pm: The ‘kacha bill’ and ‘pakka bill’ system in our country has helped mobilise black money. GST will help put an end to this: PM Modi
6.30 pm: We talk a lot about corruption but in order to eradicate corruption it is important to strengthen our system primarily: PM Modi
6.26 pm: “States in our country are not self sufficient but are interdependent. GST will boost economy of under developed States,” says PM Modi
6.24 pm: “GST can help us achieve our aim of Economical and educational empowerment of the poor,” PM Modi in Lok Sabha.
6.22 pm: ‘Faith very important to strengthen federal structure of India. GST will act as a catalyst in this regard,” says Narendra Modi.
6.20 pm: “It is true that consumer States will benefit more from #GST but Centre will compensate manufacturing States in case of losses,” says Narendra Modi.
6.19 pm: “GST Bill will act as catalyst to help strengthen trust between Centre and States,” says Prime Minister.
06.18 pm: “GST is a great step by ‘Team India’. It is not a single party’s vision,” says PM Modi.
06.14 pm: “The debates have eliminated the drawbacks in the GST Bill, and a lot of flaws have been rectified,” says Prime Minister.
06.10 pm: “States in our country are not self sufficient but are interdependent. GST will boost economy of under developed States,” says Narendra Modi
06.07 pm: National interests are bigger than politics. With the passage of GST, we will send out a message that ‘consumer is the king’, says PM Modi
06.05 pm: I held consultations with Sonia ji and Manmohan Singh Ji. We made efforts to take into consideration everyone’s suggestions. With GST we intend to bring in uniformity in taxes. No matter what, the message is clear that the ‘consumer is the king’, says PM Modi in Lok Sabha
06.03 pm: My experience as a Chief Minister has helped me understand the problems of the states very well, says PM Modi
05.58 pm: This Bill is a victory for our democracy. This will empower our nation. GST is a great step towards transparency, says PM Modi in Lok sabha
05.56 pm: GST ka matlab hai great step by in India. ‘One Nation, One Tax’ is our dream, says PM Modi
05.54 pm: In relation the GST Bill and while taking a swipe at the UPA government, PM Modi in Lok Sabha said, Janm koi de aur paalan poshan koi aur kare. This is not a victory of a particular party. It’s a victory of high democratic principles, victory of all political parties.
05.52 pm: I am thankful to all the states for the passage of this crucial Bill, says PM Narendra Modi in Lok Sabha.
03.18 pm: Indirect taxation is like an anathema for a developing country, says Sathpaty in the Lower House.
03.17 pm: The Bill has been cleared in Rajya Sabha and will be cleared here beacause you enjoy a majority in Lok Sabha, says Tathagata Sathpaty, BJD in Lok Sabha
02.41 pm: Government should collect taxes like a honeybee collects nectar from a flower. Just the right quantity so that both can survive. For which I believe, 18% is an appropriate tax, says Moily in Lok Sabha
02.38 pm: Next GST Bill should be a Finance Bill and not a Money Bill, asserts Moily in Lok Sabha.
02.36 pm: You say ‘One India, One Tax’, however, one tax is not being applied over all states across the country. There are a lot of minute details that differ along state borders. I fail to understand the statement’ One India, One Tax’, says Moily
02.34 pm: Countries like Canada and Australia witnessed inflation soon after switching to GST. We need to ponder over these issues before making it a law, says Moily in Lok Sabha.
02.27 pm: If there is any difficulty caused to the consumer, it will be a difficulty for our economy. The moot question is whether the GST rate will fall or increase with time or not? asks Moily
02.25 pm: The states and the Centre have a vested interest in this Bill. It will be the consumers who will be at the receiving end of our negotiations. We have to work out everything while keeping them in mind: Moily in Lok Sabha
02.23 pm: Considering the fact that the GST Council will have to rework the structure which involves 29 states, the conclusions might not be flawless, says Moily in Lok Sabha.
02.19 pm: Our Finance Minister is calling this as a ‘game-changer’ and a great revolution. No doubt it is, but then it is too early to call GST a ‘game-changer’, says Moily
02.16 pm: But this House has been taken for a junior party. Rajya Sabha is given more importance. Although we don’t have grudges: Veerappa Moily in the Lower House.
02.15 pm: If there was political consensus, this law would’ve come long long back. But Congress is now here extending full support for GST, says Veerappa Moily, Congress
02.10 pm: Future road map is that this is an enabling amendment, three more laws have to be created. Two of those have to come before Parliament, says Finance Minister in Lok Sabha.
02.09 pm: This Bill will improve the ease of doing business in India and will of course do away with the cascading effect, says FM Jaitley.
02.07 pm: If one pays tax at one stage, they wont have to give another tax on that tax component. So tax on tax will be eradicated, says FM Jaitley in the Lower House
02.05 pm: GST will avoid complexities, says FM Arun Jaitley in Lok Sabha
12.25 pm: GST has been in the making since 15 years and after getting across standing committee, today by almost a consensus it has been passed.
GST is much needed economic reform for India which will ensure a boost in the GDP, manufacture and inflation is minimised.
Naturally for a step like this which will touch every section of the society one should not play politics over it, says Sambit Patra, BJP in conversation with FE Online.
9.40 am: “The Congress party will take a similar stand in the Lok Sabha as it had taken in the Rajya Sabha. We will support the Bill, but will also raise deficiencies in the Bill, as the party had done in the Rajya Sabha. We will tell the people why the Bill was delayed and what were its repercussions, otherwise they would be under impression that the Congress had delayed the Bill,” said Mallikarjun Kharge.
The GST Bill is expected to get a safe passage in the Lok Sabha, where the BJP-led National Democratic Alliance has a commanding majority. After it is passed in Lok Sabha, the Bill will go to the state assemblies for ratification. The Bill needs ratification by half of the assemblies to become a law.