25.4.15

GST Bill Introduced

Finance Minister Arun Jaitley moved the Goods and Services Tax Bill in the Lok Sabha for consideration, braving a prolonged wrangling with the Opposition over procedure. Almost the entire Opposition raised technical objections and insisted that the bill be referred to the standing committee.
Given that GST is a Constitution amendment bill that requires two-thirds support in both the Houses and with Congress looking keen on `returning the compliment' to BJP for blocking the same bill when it was in power, the government will need deft political management, especially in Opposition-dominated Rajya Sabha, to ensure the bill's passage. The government has exuded confidence in its ability to push the bill through in both Houses by next week despite the majority of Opposition parties staging a walkout in the Lok Sabha.
Even as Jaitley exhorted all sections of the House to jointly back the bill by citing how GST could offer a `win-win' situation for the states in earning more revenues and by showcasing the legislature “as the best example of co-operative federalism on display ,“ Congress chief Sonia Gandhi was seen actively encouraging party members to press for referring the bill to the standing committee, a demand that was backed by most Opposition parties including government friendly parties AIADMK and BJD.
Later in the day, Congress spokesperson Abhishek Singhvi said his party was not against GST, “which is our baby“ but warned the Centre of “consequences“ it could face (in the Rajya Sabha) if the bill is pushed without referring to the standing committee.
Congress leaders are debating whether they should eventually let the bill sail through, citing the “party's principled support to the bill“ or whether it should hold back the legislation for a while as it did with the insurance bill. There are indications that apart from trying to engage Congress and allies, Jaitley is also in back-room negotiations with chief ministers such as Mamata Banerjee, J Jayalaithaa, Navin Patnaik and leaders such as Sharad Pawar and some Janata Parivar parties to mop up support. GST needs to be ratified by at least half the number of states too to become a law.

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