Govt looks to budget session for passing GST Bill

In the Rajya Sabha, where the Treasury does not enjoy a majority, the government countered the Congress’s protests by moving the SC/ ST Bill that made provisions for stricter punishment in case of atrocities against them.

As the House met for the day, opposition members waved the supplementary list regarding the excise duty hike on oil.

The Minister said the government is looking to spur public spending further to provide momentum to the economy since private investment is yet to kick in, counting on rising revenue from a growth recovery to set aside more funds for infrastructure creation in the country.

Laying out a detailed roadmap on the implementation of the GST Bill, the FM stated, “Nobody has the suitable to cease or stall the expansion of India, it was an concept which was accepted by all political events”.

Jaitley asked. “GST is an idea which I have no doubt that, if not today, tomorrow it has to be approved, we are just going through the agony prior to passage of the bill”, the FM said, adding that the GST Council will decide the rates as the states and the Centre were surrendering their rights to the council.

“They have to save this money to cover up where they have failed”, he said, adding that Rajya Sabha does not have power to reject financial bills.

He said GST (Goods and Services Tax) bill, which aims at reforming the direct taxation system in the country, can push the country’s growth by one and one-and-a-half per cent.

“Are tariffs part of the constitution?” Can tariffs ever be cast in stone? Addressing industry leaders, Jaitley also hinted that standard rate under GST would be less than 18%. If there is a drought and you need to raise the tax, can you amend the Constitution?

The Congress, which championed GST during its tenure, has been seeking a resolution to issues raised by it before it allows a constitutional amendment to usher in GST to be passed by the Upper House.

He said the best solution to poverty eradication is enabling the country to grow faster which will generate jobs and increase resources of the government.

Meanwhile CPI(M) blamed the Government for parliamentary logjam which was stalling the GST Bill, claiming a section of the ruling dispensation was “sabotaging” it. BSP chief Mayawati said she was ready to support the government in clearing the Bill. If the next monsoon season is at least normal and some revival of global growth starts taking place, in addition to where we are now (of 7.4% GDP growth), I do not see any difficulty why India can not improve upon its growth rate by 1- 1.5 percentage point.

The one per cent additional tax was proposed to make up for the loss of Central Sales Tax (CST) which will no longer be available in the new regime.

The government earlier wanted to implement the new GST from April 2016.