With reference to the report, "Modi's tea diplomacy stirs hopes on GST" (November 28), the prospect of amendment of the much-awaited Goods and Services Tax (GST) Bill in the coming winter session of Parliament seems to have turned brighter after the Prime Minister reached out to the Congress, the main Opposition party.
If the GST is legislated, it would be a landmark for Indian economic reform. Of course, it will also boost the market economy's sentiment. Experts say a full-fledged implementation of the GST will do away with multiple taxes and levies and potentially raise gross domestic product (GDP) growth by 100 to 200 basis points in a couple of years.
The passage of the Bill will be a respite for both foreign and domestic investors as they will benefit from a single tax system. It cannot be denied that despite gaining momentum, India's GDP growth is stuck at 7.3 per cent. Passage of the Bill will ensure that it breaks this barrier.
The flip side to the passage of the Bill lies in the concerns raised by the Congress. The party has objected to states being given the power to levy an additional one per cent tax on the supply of goods over and above the GST rate. This clause, the party believes, has been included to benefit Bharatiya Janata Party-ruled states such as Gujarat and Maharashtra.
However, the Congress must exercise prudence and restraint in the winter session and play the role of a constructive Opposition.
Buddhadev Nandi, Bishnupur
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