Hopes for GST rise as Rajya Sabha to debate bill for 4 hrs

Govt agrees to Congress demand for discussion on price rise in both the Houses

Four hours have been set aside by the Rajya Sabha next week for the debate on and passage of the Goods and Services Tax (GST) constitution amendment Bill in the week beginning December 7.

But the real action on the Bill is likely to take place in the week beginning December 14, with the Congress and the government all set to spend the coming week negotiating on the Bill. The government has also agreed to the Congress demand for a discussion on price rise in both the Houses before the GST is taken up in the Rajya Sabha.

There have not been formal talks between the Congress and the government after the meeting of Prime Minister Narendra Modi and Congress President Sonia Gandhi on November 25. However, senior ministers and Congress leaders have exchanged notes on the possible compromise formula. Now, both sides await the return of the Congress president on Sunday evening. Finance Minister Arun Jaitley has a wedding in the family next week.

The informal discussions between the Congress and government suggest that there is hope for passage of the GST Constitution Amendment Bill in the ongoing winter session. The Congress is inflexible on doing away with the one per cent tax on inter-state commerce in goods. On Friday, a panel headed by Chief Economic Adviser Arvind Subramanian recommended as much in its report submitted to Jaitley, which makes it easier for the government to accept the Congress demand.

A senior Congress leader said the party was amenable to accepting the government's argument that an 18 per cent cap on the GST rate not be included in the Constitution Amendment Bill. However, the Congress has insisted this cap be included in the subsequent GST Bill itself. The Congress argues that the cap in the GST Bill can be amended, if required, by a simple majority.

Similarly, a compromise now looks possible on the issue of the disputes resolution authority. The Congress is of the view that the GST Council can refer a dispute to a redressal authority but it wants the government to come up with specifics of such an authority and who all could be its members.

Apart from the Rajya Sabha Business Advisory Committee allocating four hours to a debate on the GST, it has also allotted two hours for the Real Estate Bill. Select committees of the House have already submitted their reports on these two Bills.