Congress Green Signal For GST? Bill Might Finally Be Bearing Fruit

The fervent efforts of Government to pass the GST (Goods and Service Tax) Bill might finally be bearing fruit.

According to the sources close to the Congress Vice President Rahul Gandhi revealing that some progress was made in the negotiations regarding the bill.

Early next week, the GST Bill might be tabled in Rajya Sabha on Monday or Tuesday.

Earlier the Congress demanded to 3 measure changes in the GST Bill. The cabinet cleared measure changes in the Constitutional Amendment Bill on the GST Bill.

On Wednesday, the Union Cabinet approved the 3 key changes to the Constitutional Amendment Bill which was approved by the Lok Sabha in the month of May 2015.

The amended Bill will have to go back to the Lok Sabha again for approval, once the Rajya Sabha approves the bill or legislation.

In the present form, the Bill provides that the Central Government will give 100 per cent compensation to states for first three years, 75 per cent and 50 per cent for the next two years.

But Rajya Sabha’s Select Committee had in its report recommended 100 per cent compensation for probable loss of revenue of the state for five years.

As per the amendments, the Central Government will now constitutionally guarantee states any loss of revenue from the GST subsuming all indirect taxes, including VAT, in the first five years of introduction.

Chief Economic Adviser Arvind Subramanyam and Finance Minister Arun Jaitley held two meetings with Congress leaders. They also talks with other parties including Samajwadi Party, JD(U) and CPI(M).

According to the congress sources said the Vice president Rahul Gandhi also expects a positive outcome from these consultations.

A senior Government functionary said the talks are on with various state’s parties on GST and so far things are moving forward as expected.

FM Jaitley told the opposition leaders that government wants to bring consensus on the GST and was ready for talks with any leader even during the weekend to hear out and address their concerns on the GST bill.

According to sources that the government is also in touch with AIADMK chief J Jayalalithaa on the GST bill.