Congress indicates softening on GST

All-party meet addressed by PM, who urges consensus, cites national interest; stands yet to be formalised

There’s a perceptible change in the Congress party’s position, hitherto opposed, on the proposed national goods and services tax (GST) Bill.

On Sunday, Ghulam Nabi Azad, its leader in the Rajya Sabha, said the party was ready to support any legislation in the interests of “the people, business and India”. “We are not for preventing any Bill from being passed,” he said after an all-party meeting on the issue.

Ahead of the previous session of Parliament, he’d stated the party was opposed to the GST “in its present form”. His tone on Sunday indicated the party had changed its position, faced with near-isolation on the issue in the Rajya Sabha.

In Sunday’s meet, called by recently appointed Parliamentary Affairs Minister Ananth Kumar, Prime Minister Narendra Modi complimented all political parties for speaking in one voice on Kashmir. He sought similar help to pass the GST Bill. “We represent both the people and parties, and there is a need to keep national interests above anything else,” he said.

After the meeting, attended by 45 leaders of 30 political parties, Ananth Kumar said the Congress had assured support to legislative proposals on merit. He said the government assured the leaders of an open mind and would facilitate discussion on issues raised by various parties. Kashmir and the recent political crisis in Arunachal Pradesh are two and likely to be raised.

The minister said the government would build consensus on GST and consult all parties. Despite their opposition to the ruling Bharatiya Janata Party, the Janata Dal, Samajwadi Party and Trinamool Congress are supporting the GST Bill.

Jyotiraditya Scindia, of the Congress said on GST: “There have been intermittent discussions…a draft (proposal should) be presented on each of three issues...the one per cent cap which is an additional levy that can be levied by states, the issue of an 18 per cent cap on GST and the issue of a dispute resolution mechanism. On all these, the ball is fairly and squarely, as we have always mentioned, in the government’s court.”

Adding: “Discussions have happened with the Congress leaders but we are still awaiting a concrete response from the government; only then can we express our opinion.”

The only other entity still opposed to the passage of GST is the All India Anna Dravida Munnetra Kazhagam, which rules Tamil Nadu. “We believe there is a possibility of resolution and the ball is in the Centre’s court. We hope the PM intervenes in the matter,” its spokesperson, K Pandiarajan, had said last month. “We have raised six specifications; one has been addressed. A major specification is to compensate states like Tamil Nadu for five years. Manufacturing states like Tamil Nadu should not get penalised for doing well…We have announced so many schemes and have made a huge amount of fiscal commitment. If we compromise on everything, where will we find resources?”

Tamil Nadu demands that revenue neutrality be ensured if GST takes effect, a consensus be reached on a revenue-neutral rate and assurance of full compensation to states for revenue loss. And, that petroleum products be kept out of GST and states be allowed to levy additional taxes on tobacco and tobacco products.

Tamil Nadu Chief Minister J Jayalalithaa had met the PM in mid-June. Parliament’s monsoon session ends on August 12. It being a relatively short session, with 20 sittings, the government’s legislative agenda has only 16 Bills. Some considered important haven’t been listed; the contentious Land Bill has been given a quiet burial.

Apart from GST, the other key Bill to be taken up will be the Enforcement of Security Interest and Recovery of Debts Laws and Miscellaneous Provisions (Amendment) Bill, after a report is presented by the joint committee examining it, in the first week.

PENDING BILLS

The govt on Sunday identified a legislative agenda that includes 16 Bills to be taken up in the monsoon session, including 3 Bills to replace ordinances

IN LOK SABHA

• The Indian Trust (Amendment) Bill, 2015 (agreeing to amendments made by the Rajya Sabha)
• The Enforcement of Security Interest and Recovery of Debts Laws and Miscellaneous Provisions (Amendment) Bill, 2016 ( after report is presented by the joint committee in the first week)

IN RAJYA SABHA

• The GST Bill, also known as the Constitution (122nd Amendment) Bill, 2014
• The Whistle Blowers Protection (Amendment) Bill, 2015
• The Compensatory Afforestation Fund Bill, 2016
• The Regional Centre for Biotechnology Bill, 2016
• The Enemy Property (Amendment) Bill, 2016
  (All the above five Bills in the Rajya Sabha have been passed by the Lok Sabha)
• The Child Labour (Prohibition and Regulation) Amendment Bill, 2012
• The Homeopathy Central Council (Amendment) Bill, 2015

BILLS FOR INTRODUCTION (IN EITHER HOUSE)

• The High Courts (Alteration of Names) Bill, 2016
• The Institute of Technology (Amendment) Bill, 2016
• The National Institutes of Technology, Science Education and Research (Amendment) Bill, 2016
• The Use and regulation of DNA based technology in Civil and Criminal Proceedings, Identification of Missing Persons and Human Remains Bill, 2016

ORDINANCES TO BE REPLACED

• The Indian Medical Council (Amendment) Ordinance, 2016 (to replace an ordinance)
• The Dentists (Amendment) Ordinance, 2016 (to replace an ordinance)
• The Enemy Properties (Amendment and Validation) Third Ordinance, 2016

FINANCIAL BUSINESS

Discussion and voting on Supplementary Demands for Grants (General) for 2015-16.

It being a short session, key Bills missing from govt’s list of business for monsoon session:

• The Factories (Amendment) Bill,2014
• The Electricity (Amendment) Bill,2014
• The Lok Pal and Lokayuktas and Other Related Laws (Amendment) Bill,2014
• The Merchant Shipping (Amendment) Bill,2015
• The Micro, Small and Medium Enterprises Development (Amendment) Bill,2015
• The Consumer Protection Bill,2015
• The Benami Transactions (Prohibition) Amendment Bill,2015
• The Companies (Amendment) Bill, 2016 (referred to Standing Committee)
• The Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation Resettlement (Amendment) Bill, 2015