GST: Govt positive, Cong seeks assurance on rate

Congress seeks cap on GST rate at 18%; doing away with the 1% additional tax; and setting up a dispute redressal authority

The government on Thursday exuded confidence of having the Goods and Services Tax Bill passed, with several Opposition parties coming out in open support.

The government assured the Congress, which is insisting its concerns over the Bill should be addressed, that it will engage in consultations.

On a day that the Lok Sabha discussed the Commitment to the Constitution - the Rajya Sabha was adjourned over the death of a sitting member - Bahujan Samaj Party supremo Mayawati told reporters, "The government is assuring us that the GST Bill will strengthen the economy. So we support it."

Praful Patel and Tariq Anwar of the Nationalist Congress Party also extended support to the tax reform, saying, "The GST Bill should be passed in this session." Anwar added the government should look into issues being raised by the Opposition.

Congress president Sonia Gandhi was overheard in Parliament corridors that the three points raised on the Bill by her party must be addressed. The Congress has sought a cap on the GST rate at 18 per cent; doing away with the one per cent additional tax; and setting up a dispute redressal authority.

A Congress leader said, "We are awaiting a response from the government on the issues raised by us." Asked if there was a possibility of the Congress walking out, he said it was unlikely and the possibility of the party voting against the Bill was remote.

Dismissing finance minister Arun Jaitley's claim that he had spoken to a host of Congress leaders, the party said Jaitley had not held any official consultations.

Finance ministry officials insist that an explicit cap cannot be stipulated in the Constitutional Amendment Bill, but the Congress wants no room for arbitrary tax increases. The gulf can only be bridged once the government gets back to the Opposition.

With most parties on board, the All India Anna Dravida Munnetra Kazhagam has lodged its opposition to the Bill.