Govt reaches out to Congress for GST passage

Congress labels move 'mere optics', says government not serious

The government on Thursday made a fresh attempt to push through the goods and services tax (GST) Bill, with Parliamentary Affairs Minister Venkaiah Naidu meeting Congress President Sonia Gandhi at her residence. The Congress, however, described the meeting "as mere optics with no substantial proposal from the government". Their rationale was that Naidu had nothing new to explain.

The crucial economic reform Bill is pending before the Rajya Sabha, with the principal Opposition party, the Congress, demanding substantive changes, including stipulating an 18 per cent rate cap.

After stepping out of 10, Janpath, Naidu said, "We had invited Sonia Gandhi and former Prime Minister Manmohan Singh and discussed with them the GST and other Bills. In the same context, I met the Congress President today (Thursday) and recalled to her that as per the discussion held earlier, Congress should finalise their stand. They had raised some issues, which were answered by Finance Minister Arun Jaitley."

Naidu said the government has already spoken to Leader of Opposition in the Rajya Sabha, Ghulam Nabi Azad, and Congress' Deputy Leader in the House, Anand Sharma, in this regard. "I reminded her that a quick decision should be taken and we should move forward immediately on the GST and the real estate Bills."

The fresh burst of activity on the GST front by the government was accompanied by speculation of the Budget session being advanced for passage of these Bills. But Congress leaders confirmed that this had not been mentioned in the meeting with Gandhi.

Dismissing the political outreach, Congress spokesperson and former Union minister Kapil Sibal said, "Venkaiah Naidu meeting Sonia Gandhi on GST is mere optics. There is no substantial proposal from the government. The government itself is not keen on passing the GST. The reality is that the Swadeshi Jagran Manch and the RSS (Rashtriya Swayamsevak Sangh) are against it. But, Jaitley ji blames Congress!"

Apart from the cap on the GST, the Congress wants removal of one per cent additional tax on inter-state transfer of goods and a dispute resolution panel. Rejecting reports that the government had agreed to the Congress demands, Sibal said, "Had there been anything substantial, Prime Minister Narendra Modi and Finance Minister Jaitley would have gone on Twitter..."

Sources in the Congress disclosed that Naidu had sought a meeting with Sonia Gandhi only last evening. Due to the last minute change of programme, Chattisgarh Pradesh Congress Committee Chief Bhupesh Baghel could not meet Sonia Gandhi. Naidu told reporters that the Congress President said she would consult her party leaders. Those in the know say any decision would be taken once Congress Vice-President Rahul Gandhi returns. He was scheduled to return from his Europe trip on Thursday night.

Recently, Jaitley had said that the rolling out of the ambitious GST regime was "certainly" doable this year and added that he was in "continuous touch" with the Congress to persuade them to cooperate. As for the real estate Bill, it was referred to a select committee of Rajya Sabha after demands from the Congress and other Opposition parties. The government maintains that it had accepted almost all recommendations of the committee and expects it to be passed at the earliest.

CONGRESS' THREE DEMANDS ON GST

• GST rate to be capped at 18% and stipulated in the 122nd Constitutional Amendment Bill. Govt unwilling to concede
  

 

Abolishing the 1% entry tax. Govt willing to consider
 

Setting up a dispute redressal mechanism. Govt open to discussion