Maharashtra mulls special session to clear GST Bill

Opposition assures support, but does not want state's interest to be compromised

The (Bharatiya Janata Party) BJP-led government in Maharashtra on Thursday  indicated that it is mulling convening a special session of the state legislature for the approval of the Constitution Amendment  Bill for the goods and services tax (GST).

Further, the state  government will explore enactment of a special law as per the article 243 X of the Constitution of India, or inclusion of provision in the State GST to enable the direct transfer of compensation to civic bodies instead of routed through consolidated fund.

State Legislative Affairs Minister Girish Bapat told Business Standard, “The government will certainly consider convening a special session of the state legislature for its approval of the Constitution Amendment Bill for GST. The state cabinet will take a decision on the timing of the proposed session.''  He informed the three week monsoon session was concluded on August 5 while the winter session will start on December 5.

Besides Maharashtra, Assam and Delhi have also expressed their intent of passing an enabling Bill in their assemblies.

Bapat, however, refrained from giving any dates for the special session, reiterating that the state cabinet will take a decision in this regard. Maharashtra’s response comes after the Union minister Venkaiah Naidu  has reached out to the various states with a call to expedite approval of their respective legislatures.  

Opposition Congress and Nationalist Congress Party (NCP) said they would support the Constitution Amendment Bill in the state legislature. Leader of Opposition in the state assembly Radhakrishna Vikhe-Patil said his party at the Centre has been the architect of the GST and it has supported the Constitutional Amendment Bill in the parliament. “The Congress party in Maharashtra will also extend its support. However, the party is of the view that the interest of the state, which is a predominantly manufacturing state, need not be compromised but should be protected after the implementation of GST.”

NCP group leader in the state Assembly, Jayant Patil, recalled that as the state finance minister in 2006-07, he had strongly argued for the introduction of GST. However, IT infrastructure was to be put in place. “The time is now opportune for GST’s implementation and NCP will support in the state,” he informed.

However, Patil said Maharashtra has the ability to impose new taxes and recover. “With the GST regime, the state won’t be in a position to do so so in that sense it will be a loser. But during last two decades the services sector has grown manifold,” he noted.

With the implementation of GST, state will be able to get its due share in services tax and that's how it will be gainer,'' he noted.

Shiv Sena MP Anil Desai said that method of quick recovery of revenue loss back to the state and local bodies must be ensured other wise local bodies will collapse.