Opposition's walkout on GST issue a 'face-saver', says FM Sitharaman

Finance Minister Nirmala Sitharaman on Wednesday criticised the opposition parties for their walkout from the Lok Sabha after their amendment to withdraw GST levy on medical and life insurance premiums was not taken up and said they did so as a "face-saver" after she addressed all their issues in her speech.

Speaking to reporters in Parliament House Complex, Sitharaman said the GST Council, which is a constitutional body, can take up any matter related to the GST and such an amendment could not be moved in Parliament as demanded by the opposition parties.

"They were given appropriate response to all their issues. They were looking for a face-saver and picked on this to stage a walkout. It was an afterthought," she said.

RSP member N K Premchandran had moved the amendment during the passage of the Finance Bill, seeking removal of 18 per cent GST on medical and life insurance premiums.

Normal procedure of the House is that the amendment is circulated only if it is admitted, he told reporters outside Parliament after the walkout to refute the point that it was not an appropriate amendment for the House to take up.

"Normally if an amendment is not accepted, then it is not circulated," he argued.
 

 

Sitharaman told reporters that Premchandran was not rightly-informed. She said the Kerala MP is held in regard by everyone but his move was not proper.

The minister, who in her Budget for 2024-25 proposed to lower the long-term capital gains tax on real estate to 12.5 per cent from 20 per cent but without the indexation benefit, moved an amendment to the bill to give the option. Indexation benefit allows the taxpayers to arrive at the cost price of the property after adjusting for inflation.

She told reporters that the government's amendment was based on input following the Budget's presentation.

Prime Minister Narendra Modi heard those voices and wanted to give relief to the middle class, she said.

The Lower House approved the bill with 45 official amendments by voice vote.