 "Delayed GST better than a flawed one: Arun Jaitley")
“I think a delayed GST is better than a flawed GST,” Jaitley said at the annual general meeting of industry body Ficci.
However, there is a possibility that three other pieces of legislation — the arbitration Bill, a Bill to set up benches in high courts to deal with commercial disputes, and the bankruptcy Bill — would be cleared in Parliament, he added.
Holding the Congress party responsible for delaying GST for “collateral reasons”, he said that accepting some of the party’s conditions would render the new indirect tax system flawed.
“And the only collateral reason I suspect is: if I couldn’t do it, then why should somebody else do it?” Jaitley said.
The Congress has asked the government to do away with the proposed one per cent additional tax on inter-state movement of sale of goods, set up a mechanism for dispute resolution and constitutionally cap the GST rate at 18 per cent.
Jaitley also expressed reservations about capping the GST rate in the Constitution amendment Bill.
“I will still try and persuade them to give up their rigidness of constitutionally prescribing the tariffs. Constitutionally prescribing the tariffs could actually be an albatross around the neck of the future generations. We owe it to them not to create a situation of this kind,” he said.
The Constitution amendment Bill is stuck in the Rajya Sabha — the government had planned to roll out GST from April 2016.
Jaitley also called attention to other pieces of legislation that are pending before Parliament.
“John Major had said a week is too long a time in politics. I think three days are also a long time in politics. Therefore, next three days of work in Parliament are extremely crucial. I am going to try and push some of them. There is a long agenda of reforms and structural changes,” the finance minister said.
On the matter of the ease of doing business, he said that India had almost ceased to be a centre for dispute adjudication and arbitration.
“Indian companies have to go through costly international arbitration and find it prohibitive. Therefore, the arbitration Act, which provides for fast-track mechanism with single arbitral member and outer time limit of six months to complete adjudication, will come up in these three days,” Jaitley said.
The Bill has already been passed by the Lok Sabha.
Apart from that, the finance minister also said that he would push for the insolvency and bankruptcy Bill before Parliament in the next three days.