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GST focus now shifts to states; Opposition assails attempts to convert it as money bill

Though the roll-out of the GST speeds up after the Rajya Sabha's nod to the Constitution amendment bill, the Opposition still has a liver to pull brakes. The Bill will now have to be passed by the assemblies of at least 15 states.

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Even as the roll-out of the Goods and Services Tax (GST) speeds up after the Rajya Sabha's nod Wednesday night to the Constitution amendment bill, the Opposition still has a liver to pull brakes, as it will now have to be passed by at least 15 state assemblies.

Congress spokesperson and former union minister Jairam Ramesh did refer to this, while holding a warning that government attempts to declare GST bills as money bills to circumvent Rajya Sabha will be resisted in coming days. The BJP together with its allies rules 13 states, effectively 12, because the Constitution Amendment legislation approved by Rajya Sabha is not applicable to Jammu and Kashmir, in the wake of its special status. The Congress tother with its allies commands nine states. Others rule in rest of 9 states. 

The Bill , passed in the Rajya Sabha, will be introduced in the Lok Sabha on Tuesday. The BJP and the Congress have already issued whips on attendance.  Two more bills have to come to Parliament to complete the transition to GST - the Central GST Bill and the Inter-State GST Bill, after the passage of Constitution Amendment Bill. Then will start the process of states passing their own SGST Bills to complete the process. 

Since Rajya Sabha where Opposition has numbers has become pain in the neck of the government, it has declared some crucial legislations as Money Bills to avoid voting in the Rajya Sabha. The 'Aadhar Bill'was declared as Money Bill. A Private Member's Bill on Andhra Pradesh – is also expected to be introduced as a Money Bill. Ramesh said with this track record we have apprehensions that two Bills  – the GST and the IGST may be declared as Money Bills instead of  Financial Bills.

Declaring that GST is a major reform and a major transformation, he said  it will take three to four years for the transition to be complete. “A lot of home work needs to be done. We do not know what the GST rate is? We do not know about the administration of GST as yet? So, whether the GST will be a good and simple tax or whether it will be a complicated tax, time alone will tell. We are prepared to cooperate. But we will not tolerate circumventing of the Upper House,” he said.

Even after all the protracted negotiations, the Bill has three weaknesses. Against being touted as one-country-one tax reform, the states will have freedom to fix slabs and also tobacco, electricity and real estate have been permanently kept out of its purview. Also petroleum products will be out from its purview for five years.

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