Government to introduce GST bill in Rajya Sabha tomorrow, Congress likely to support

After being blocked in several parliament sessions, the Constitutional Amendment Bill for Goods and Services Tax (GST) seems to have crossed all major hurdles and will be taken up for discussion and passage in the Rajya Sabha on Wednesday. The BJP has issued a whip to its members asking them to be present in the House for the next three days.

It was after a day-long tussle, that the BJP and Congress agreed to the Wednesday date. While the BJP wanted it presented on Tuesday, Congress leaders said they will be too busy with party chief Sonia Gandhi's rally in Varanasi.

Incidentally, Varanasi is Prime Minister Narendra Modi's constituency in Uttar Pradesh, which votes in Assembly elections early next year. The BJP wanted the Bill to be presented on Tuesday for the very same reason; to draw attention away from Sonia's campaign.

While government sources said all GST issues are now resolved, Congress sources said there is still no agreement over its key demand that a cap on the rate of GST be mentioned in the Bill. "We are prepared to accept every reasonable solution which does not adversely affect business and industry, and does not adversely affect the federal structure and the consumer at large," said Congress spokesman PL Punia.

However, since there was broad consensus that the rate should not be part of the Constitution amendment, the Bill is less likely to face disruptions in the Rajya Sabha as was witnessed in the past sessions. It was cleared in Lok Sabha in 2015.

The gist of the changes made in the Bill after consultation with the state FMs and opposition leaders has been sent to all Rajya Sabha members. "We have appealed to all parties that it be passed with consensus," said parliamentary affairs minister Ananth Kumar.

The Business Advisory Committee (BAC) of the House has allocated five hours for the bill, which needs the support of two-third of the members present and voting and 50% of the total strength of the House. This would mean 161 members of those present and 123 of the total strength.

MS Mani, senior director on Deloitte India, said whatever has emerged of the Bill after taking into consideration demands of all parties was the best that one could get. "The Bill, the way it is right now, is the best it can get.

Therefore, as a country, we should go ahead with it. There has been a lot of back and forth on this Bill in the past but now fortunately everybody is trying to work it out. Let's just go ahead with the Bill in whatever form it is.

Whatever changes need to be made can be made later," he said.

After the Bill for amendment of Constitution, which will enable the enactment of GST Act, is passed in the upper house, it will need to be ratified by 50% of the state assemblies. It will then go to the President of India for his consent. Only after the President gives his consent, the government can start working on the Bill.

The government is looking at implementing the GST Act by April 1, 2017. This, Mani said, would give various stakeholders less time to prepare for it.

"If it (GST) is rolled out from April, 2017, it will give people less time to prepare. If it is pushed to September, 2017, people will have much more time to prepare," he said.

According to him, many manufacturing companies have already started putting systems in place for GST. The new levy is expected to improve tax compliance, enhance revenues collections of states and Centre and boost GDP growth by two percentage points.

(With inputs from Iftikhar Gilani)