Congress is preparing a dissent note which would say that it cannot support a bill which is not “simple and comprehensive”.
By subsuming most indirect taxes levied by the central and state governments such as excise duty, service tax, VAT and sales tax, the new regime proposes to facilitate a common market across the country, leading to economies of scale and reducing inflation through an efficient supply chain.
There are some bills like Companies (Amendment) Bill, 2014; Regional Rural Banks (Amendment) Bill, 2014 and Public Premises (Eviction of Unauthorised Occupants) Amendment Bill, 2014 which have been passed in Lok Sabha, but are waiting the approval of Rajya Sabha to become a law.
The modification pertains to Clause 19 of the Bill, amended model of which now reads as: “Parliament might, by regulation, on suggestion of the GST Council, present for compensation to the states for lack of income arising on account of implementation of GST for a interval of 5 years”.
The earlier version said the compensation would be paid for “up to five years“. It said all the decisions have to be taken collectively by the Centre and the States in the GST panel and 75 per cent votes are necessary for this.
The left is demanding that states representation in the GST Council should be increased to three-fourth from the proposed two-third with the rest lying with the Centre.
NEW DELHI India’s main opposition Congress party will not support a landmark tax reform in a parliamentary session that begins on Tuesday unless Prime Minister Narendra Modi addresses its concerns about the measure, a senior lawmaker of the party told Reuters.
The other major piece of legislation the government intends to take forward is the land bill – the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Bill, 2015 – which is being considered by a joint committee of both houses.
Members of the Bharatiya Janata Party are also talking to opposition parties to allow the passage of the bill. The panel asked the States to ensure regular flow of revenues to the local bodies post GST roll out.
Chief economic adviser Arvind Subramanian on Monday said the committee he chairs to finalize a revenue-neutral GST rate will submit its report within four to six weeks.