Govt reaches out to Cong again over GST, Naidu meets Sonia

Facing stalemate over GST bill, Government today reached out to Congress again with Union Minister M Venkaiah Naidu calling on party chief Sonia Gandhi seeking her support for its passage and expressing willingess to advance Parliament's Budget Session in this regard.
This is the second major outreach of the government to the top Congress leadership on the GST bill after Prime Minister Narendra Modi had met Sonia and his predecessor Manmohan Singh over tea at his 7 RCR residence on November 27.
The second round of meeting between the government and the Congress top leadership appeared to indicate that some middle ground is being worked out for the passage of the crucial GST bill.

Sources said the government is enthused with unequivocal support announced by a number of regional parties to the GST bill and is toying with the idea of convening the Budget Session earlier than its normal schedule in third week of February but would like Congress to be on board on this decision.
After a 20-minute long meeting with Gandhi at her residence, Naidu told reporters that he met Gandhi in his capacity as the Parliamentary Affairs Minister and that he asked the Congress President to take a final stand on the two pending bills relating to GST and real estate.

"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 as Parliamentary Affairs Minister of the government today met the Congress President and recalled to her that as per the discussion held earlier, Congress party should finalize its stand. They had raised some issues, which were answered by Finance Minister Arun Jaitley.

"Since the government has already spoken to Leader of Opposition in 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 Bill," Naidu told reporters after the meeting.

Naidu said that Gandhi told him that she will discuss the issue within her party and get back to to the government.
"I said if you take a positive decision, we can also call the Budget Session early. I merely gave an indication for it. I have not made any committment (regarding the early session)," the Minister said.
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Sources said during the meeting, Congress President is learnt to have asked Naidu about the government's view on the three main suggestions given by the Congress on GST.
Naidu told Gandhi that issues raised by Congress in respect of GST bill were considered by the government and the government's position was communicated to Congress leaders earlier.

Regarding the Real Estate bill, Naidu told Gandhi that as decided by Congress and other parties, the Bill was referred to a select committee of Rajya Sabha and the government had accepted almost all recommendations of the committee.
Naidu told the Congress President that if required, the government will like to advance the Budget session of Parliament for early passage of these bills if political parties agree to it.
The Congress President is learnt to have told Naidu that she will get back to him after consultations with her party leaders.
The Constitution Amendment bill to roll out GST is stuck in the Rajya Sabha where the ruling NDA does not have a majority of its own. The bill is being opposed by Congress although many other opposition parties are on board.

Congress is seeking three changes in the bill, including a constitutional cap on the GST rate, to support it.
The other two changes sought by Congress in the GST bill are removal of one per cent additional tax on inter-state transfer of goods and a Supreme Court judge headed dispute resolution panel.
GST, which seeks to simplify and harmonise the indirect tax regime across the country with a single uniform rate, has been stuck for many years in a political gridlock.
While the previous UPA regime failed to get it passed in Parliament due to opposition from the BJP and some other parties, Congress has now refused to support the bill proposed by the NDA government in its present form.

Finance Minister Arun Jaitley had recently said that the rolling out of the ambitious GST regime is "certainly" doable this year and added that he was in "continuous touch" with the Congress in a bid to persuade them to cooperate.
Jaitley said the passage of GST remains one of his key priority areas for the New Year, along with rationalising the direct taxes and further easing of process for doing business.