Business Standard

GST jettisoned, govt considers special session

House disruptions put a question mark on planned roll out of GST by April 1, 2016

<a href="http://www.shutterstock.com/pic-258006002/stock-photo-gst-or-goods-and-services-tax-alphabet-letters-concept-of-government-service-tax-slightly.html" target="_blank">Image</a> via Shutterstock

BS Reporter New Delhi
An online petition, signed by over 15,000 people, including some of the top industrialists of India, that had appealed to the Congress-led Opposition to end the disruptions in the Rajya Sabha to pass the Goods and Services Tax (GST) Constitutional Amendment Bill led to more protests in the Upper House on Wednesday and effectively jettisoned, in what was the penultimate day of the session, any hope of the ongoing monsoon session of Parliament passing the all-important Bill. The events also put a question mark on the planned rollout of the GST regime by the appointed date of April 1, 2016.

According to a government strategist, the Cabinet Committee on Political Affairs could meet on Thursday to take a decision not to prorogue the House. This could enable the government to extend the current session after a break. The government might even call a special session, sources said. But any such decision will need to have the Opposition, particularly the Congress, on board and will need to factor in the Bihar state polls as well as the festival of Rakshabandhan due on August 29.

Another government strategist expressed the hope that the deadline could still be met if the winter session of Parliament could be advanced and at least half the states ratify the GST Bill soon after it is passed by Parliament, enabling the two Houses to take up other GST-related Bills in the Budget session. Either of these scenarios could work only if the government manages to reach out to a Congress leadership livid after the personal attacks on it by External Affairs Minister Sushma Swaraj and Finance Minister Arun Jaitley.

In the Rajya Sabha, the Opposition not only stuck to its stand that the Prime Minister should face the House on issues of Vyapam and Lalit Modi but also objected to the online signature campaign — Parliament to function: Urge all political parties to have a collaborative and consultative process in Parliament. The petition has been signed, among others, by Confederation of Indian Industry (CII) president Sumit Mazumder, Infosys co-founder Kris Gopalakrishnan, Bajaj Auto chairman Rahul Bajaj, Biocon’s Kiran Mazumdar-Shaw, Hero MotoCorp chief Pawan Munjal, GVK’s GV Sanjaya Reddy, GE India head Banmali Agrawala, Adi Godrej, Ajay S Shriram, Atul Punj and Vikram Kirloskar.

Janata Dal (United) chief Sharad Yadav and Left parties attacked the government for “using” media and businessmen to hit out at the Opposition for disrupting Parliament. Yadav said the petition vindicated the charge that the BJP government was “a government for the moneybags” and it was an attack on Parliament by the “capitalists”.

Jaitley retorted: "Does the common man want Parliament not to function? You are guilty of stalling democracy." Congress MPs rushed into the well of the House leading to an adjournment. When the House reassembled, the Opposition again criticized the signature campaign causing another adjournment.

The GST Bill came up for discussion when the House reconvened in the post lunch session but was adjourned for the day with the Congress MPs rushing into the well.

 

LIKELY OPTIONS BEFORE GOVT

  • Not prorogue the House, extend session after a break
  • Call special session
  • Advance winter session by a fortnight
  • Once both Houses pass the Bill, ensure half the states ratify it
  • Take up other GST-related Bills in the Budget session

Don't miss the most important news and views of the day. Get them on our Telegram channel

First Published: Aug 13 2015 | 12:38 AM IST

Explore News