BackGST bill: BJP issues whip to Rajya Sabha MPs in signal of intent
The whip is significant as NDA is hopeful that the GST bill will be tabled in Rajya Sabha this week and will be taken up for discussion and passage
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New Delhi: The stage is set for the introduction and likely passage of the constitutional amendment bill in the Rajya Sabha to enable roll-out of the goods and services tax (GST).
Parliamentary affairs minister Ananth Kumar told reporters on Monday that the GST bill has been listed in the Rajya Sabha agenda on Wednesday.
Ahead of it, the ruling National Democratic Alliance (NDA) has all but succeeded in forging consensus on the bill with opposition parties, including the Congress, especially after the government accommodated some of their concerns.
If all goes as planned, the country would be just a step away from what experts have described as the biggest taxation reform in independent India. GST would subsume a slew of levies, dismantle inter-state barriers to trade in goods and services and create a common market of more than 1.2 billion people.
Once the Rajya Sabha approves it, the amended bill will be sent back to the Lok Sabha for consideration.
“The GST bill is listed for consideration and passage on Wednesday in Rajya Sabha and we seek support of all political parties. The mood is in favour of its passage," Kumar told reporters.
Also Read: NDA’s do-or-die moment on GST
The government will bring in amendments to do away with the additional 1% tax on supply of goods. It will also change the language of the compensation clause to reflect its promise to compensate states in full for five years for any revenue losses arising from a shift to GST.
The government will move two more amendments, according to the Press Trust of India, including rephrasing of the language for setting up a dispute resolution mechanism by the GST council and mentioning the principle based on which GST rates will be decided.
At a meeting of the empowered committee of state finance ministers last week, the states had agreed on a ‘guiding principle’ for fixing the GST rate—reducing the tax burden on the common man and at the same time protecting revenues of states.
According to senior leaders of the ruling Bharatiya Janata Party (BJP), finance minister Arun Jaitley held another round of talks with Ghulam Nabi Azad and Anand Sharma, leader of the opposition and deputy leader of the Congress in the Rajya Sabha, respectively. He also met Sitaram Yechury, general secretary of the Communist Party of India (Marxist), or CPM.
NDA leaders pointed out that while the government was keen, the GST bill could not be taken up on Tuesday because Congress president Sonia Gandhi is leading a public meeting of her party in Varanasi and most of the party’s senior leaders, including Azad and other senior MPs, will be in Varanasi for the political event.
“Such an important bill cannot be presented in Rajya Sabha without the presence of leader of opposition in Rajya Sabha Ghulam Nabi Azad," said a senior NDA minister.
“On GST, had a meeting with FM Jaitley ji. We expressed our concerns. He saw the merit in them and said they would be taken on board. On Wednesday, it is only the Constitutional amendment to enable GST which is set to be tabled. We await the final version of the GST bill," Yechury said on Twitter on Monday.
The BJP on Monday issued a whip to its 53 members in the upper House, telling them to be present in the house for the next three days.
The whip is significant, given that the NDA is hopeful that the GST bill will be passed this week. The business advisory committee has already allotted five hours for discussion on the GST bill in the upper House.
With just 10 working days left before the monsoon session of Parliament ends, NDA members are keen that the bill is presented at the earliest in the upper House so that there is sufficient time for a proper debate and every political party gets time to voice its concerns.
The NDA is in a minority in the Rajya Sabha with just 72 MPs. The passage of the bill will be a significant test for the NDA’s floor management skills and its attempts to reach out to the opposition. Most non-Congress and non-NDA regional parties have already assured the government that they are ready to support the bill.
“It is the Congress party which mooted the idea of GST... We had raised certain valid issues and the negotiations are still on. The consultation is still on and not yet finalized. We are prepared to accept every reasonable solution which does not adversely affect the business, industry and does not adversely affect the federal structure and the consumer at large," P.L. Punia, senior Congress leader and Rajya Sabha member, told reporters on Monday.
The only party opposed to the bill seems to be the All India Anna Dravida Munnetra Kazhagam. The government needs at least 163 members in the 245-seat House to pass the constitutional amendment bill.
Senior ministers in the government have been in touch with Congress leaders and have reached near-consensus on the GST bill.
The breakthrough happened last week when the Union cabinet accepted some of the recommendations of a Rajya Sabha select committee, such as doing away with the contentious 1% additional levy on supply of goods, one of the Congress’s three demands, and proposing full compensation to states for five years for any revenue loss.
“Regional parties have also come out in support. It is the states that will be most affected in the end. Let’s see how it pans out," said Manisha Priyam, a New Delhi based political analyst. “It will be interesting to see who opposes the bill."
“We have asked all BJP MPs to be present in Rajya Sabha for the next three days," said a senior minister of NDA.
Also Read: GST to be simple with 1% additional tax removal, say experts
With just 10 working days left for the monsoon session of Parliament to end, NDA members are keen that the bill be presented at the earliest so that there is time for a proper discussion and debate in the House and every political party gets time to voice its concerns.
The NDA is in a minority in the Rajya Sabha with just 72 MPs. The passage of the bill will a significant test for the NDA’s floor management skills and reaching out attempts made by the ruling alliance towards the opposition parties. Most of the non-Congress and non-NDA regional parties have already given an assurance to the government that they are ready to support the bill. The only visible opposition from the bill is by All India Anna Dravida Munnetra Kazagham (AIADMK). The government needs at least 163 members in the 245-seat house to pass the constitutional amendment bill.
Senior ministers in the government are already in touch with Congress leaders and have reached a near consensus on the GST bill. The breakthrough happened last week when the union cabinet accepted some of the recommendations of a Rajya Sabha select committee, such as doing away with the contentious 1% additional levy on supply of goods, one of the Congress’s three demands, and proposing full compensation to states for five years for any revenue loss arising from the transition to GST.
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