Govt in a fix on GST Bill

Can’t table Bill, as Opposition flexes muscle in Parliament.

The government is in a fix over introduction of the Constitutional Amendment Bill on the Goods and Services Tax (GST) during the current session of Parliament.

A day after Finance Minister Pranab Mukherjee told states that conclusion of dialogue on GST was not a precondition for Constitutional amendment, the finance ministry continued its preparations on tabling the Bill. Sources, however, said the United Progressive Alliance (UPA) government was still undecided on whether to go ahead with the Bill, amid opposition from many states.

States ruled by the Bharatiya Janata Party (BJP) and others such as Uttar Pradesh and Tamil Nadu have asked the Centre to give them one month to go through the amendments before taking the Bill to Parliament. These parties have a significant strength in Parliament and the Congress-led central government is jittery on whether it would get the required numbers. The government might not want to take a risk by putting the Bill for voting, sources told Business Standard.
 

NO END IN SIGHT

* UPA govt is still undecided on going ahead with the draft Bill on GST amid opposition from many states

* On Wednesday, Finance Minister Pranab Mukherjee told states that conclusion of dialogue on GST was not a precondition for Constitutional amendment

* States ruled by non-Congress parties have asked the Centre to give them one month to go through the amendments before taking the Bill to Parliament

* The finance ministry is making preparations to complete the formalities required for taking the matter to the Cabinet

Experts seemed divided on whether the government would fall if it did not get sufficient numbers in Parliament. A government official said this would be considered a money Bill, because it relates to taxation in the Constitution.

“The positive side is that money Bills are introduced only in the Lok Sabha, where the UPA may get the numbers, but whether it wants an uproar over the issue is not sure,” the official said.

Subhash Kashyap, former secretary-general of the Lok Sabha, said clearance of the Bill depends largely on how it is drafted, but even if it did not get enough votes, it would not mean a no-confidence. “It may just be a little embarrassing for the government,” he added.

Deliberations are going over the issue within the UPA, and the finance ministry, on its part, is making preparations to complete the formalities required for taking the matter to the Cabinet. If the government decides to table the Bill in the monsoon session, it will need Cabinet approval, followed by a nod from the President. The Parliament session would end on August 27, and so a decision had to be taken soon, officials said.

After meeting the states yesterday, Mukherjee had said Constitutional amendment was only an enabling provision and did not prohibit the government from continuing dialogue on rates, exemptions and other issues related to GST. He said wisdom lay in moving ahead with the Constitutional amendment without any further delay as a preparatory step for the introduction of GST.