GST bill inches closer to majority, Mamata Banerjee bats for 'one-tax formula'

| Wednesday, June 8, 2016 - 09:56
First Published |
GST bill inches closer to majority number, Mamata  Banerjee bats for the 'one-tax formula', GST bill, Goods and Services Tax ,Rajya Sabha, AIADMK ,West Bengal Chief Minister Mamata Banerjee, BJP-Congress feud- BJP-congress

New Delhi: The much heralded and long pending Goods and Services Tax (GST) bill is likely to see the light of the day soon. Parties supporting the current GST bill have now edged little closer in supporting the legislation.
The bill now has the two-thirds majority needed for its passage in Rajya Sabha. According to the reports, around 163 MPs are likely to support the bill, excluding 12 from AIADMK who might either abstain or reach a middle ground. 
Sources claim the government is promising AIADMK a compensation clause that will address the issue of loss of revenue to the state, which might lead to the party’s support for the case. 
Since the GST bill is a constitutional amendment, a vote is required and the House must be in order for the same to be passed. However, any disruption, most likely to come from the Congress, will effectively stall the bill's passage. Congress has, for long, been opposing the same on the condition of including an 18% rate into the amendment bill.
However, the backing for the bill will only become stronger if the AIADMK finally decides to support the legislation. Moreover, BJP is most likely to get a breather from West Bengal Chief Minister Mamata Banerjee who while dubbing it as a 'positive tax proposal', reportedly instructed Amit Mitra, State Finance Minister and Chairman of the Empowered Committee of State Finance Ministers on GST, to ensure its smooth passage.
So far, relations between Congress and BJP have remained tense with the Agusta corruption case being the latest feud that came to the fore. 
Congress is demanding the 18% rate to be written into the constitutional amendment bill while the government says tax rates are not written into legislation and this job be left to the GST council. Opposition to the Bill has primarily come from the Congress, which has sought a cap on the rate of GST, removal of the proposed levy on inter-State trade, and the establishment of an independent dispute resolution mechanism.
Congress has also stated that BJP did not allow the GST bill to go through when it was in the Opposition.

Download English News App and stay updated with all Latest News.
For News in English, follow us on Google+, Twitter and on Facebook.

Add new comment

This question is for testing whether or not you are a human visitor and to prevent automated spam submissions.