GST: Govt rejects Cong condition for support, latter digs in heels

The constitutional amendment needs to be cleared by parliament at the earliest, if GST is to meet its April 1, 2016 for roll out across the country

With the constitutional amendment Bill to the goods and services tax (GST) hanging fire, Finance Minister Arun Jaitley on Friday rejected the Congress party’s conditions for supporting the legislation, describing it as an “afterthought.”

Former finance minister P Chidambaram had on Thursday explicitly stated there should be cap on the GST rate at 18 per cent, the proposed one per cent additional levy needed to go, and there had to be a dispute redressal authority.

Jaitley said, “I do not think it is part of prudent politics for any party to put pre-conditions, particularly on a matter which involves a financial relationship between the Centre and the states.”

The Congress remained firm. Ghulam Nabi Azad, opposition head in the Rajya Sabha, stated: “Congress, as the author of the bill, is not opposed to GST” but “the substantial concerns raised by us have to be addressed.”  

The constitutional amendment needs to be cleared by parliament at the earliest if GST is to meet its April 1, 2016, deadline  for rollout.

Addressing the media, Jaitley said, “All these three (Congress objections are unanimous decisions of all the states, to which Congress party states are privy. So, it is clear that these three pre-conditions are an after-thought.”

Rejecting the charge of delaying the GST Bill, the Congress recalled how when the now-ruling Bharatiya Janata Party  (BJP) was in opposition, it had long blocked the building of a  consensus on the issue. Accusing the government of being “solely responsible” for the washout of the monsoon session of Parliament, Azad alleged thew former was "not in a mood to legislate” and hence did nothing to accommodate opposition demands.

Asked about the special session of Parliament being mulled by the government, he said, “We have read it only in the newspapers. Courtesy demands, democracy demands, that the opposition should be taken into confidence if the government has any such plans. When it is officially announced, we will take a call.”

Also attacking the government for “arm-twisting” business on the GST, which had prompted the latter to out an online petition urging passage, Azad said, "When we were in power, we never misused it to accuse the BJP of attempting to scuttle growth by opposing GST.”

Meanwhile, the government in its strategy of a multi-pronged attack on the Congress had directed its MPs and ministers to fan out across the country and ‘expose’ its rival.

In Chennai, Commerce and Industry Minister Nirmala Sitharaman said she was ‘very optimistic’ about getting the GST and other key Bills passed despite Congress’ disruptions. Power minister Piyush Goyal in Ahmedabad conceded there was only slim possibility of implementing a GST by the April 2016 deadline. “We will hope that the Congress will realise the futility of stalling reforms like GST and come on board,” he said.

In Lucknow, environment and forests minister Prakash Javadeker claimed, “I tell you that the GST Bill will definitely be passed. You take it down. Even in the Rajya Sabha, we enjoy a majority for GST.”