With Finance Minister Arun Jaitley announcing the government's decision to prorogue the monsoon session of Parliament, the roll-out of the goods and services tax by April 2016 will not only be unrealistic but also administratively impossible given the uncertainty over the Constitutional amendment and the subsequent time-consuming legislative processes, both at the Centre and state levels.
With the Congress, a formidable force in the Rajya Sabha, still remaining firm on its demand for ouster of External Affairs Minister Sushma Swaraj and some chief ministers of BJP-ruled states, apart from its GST-related demands, it can be assumed that the coming winter session too will be quite disruptive. Much will also depend on the Bihar Assembly election results.
In the meantime, the government should circulate draft pieces of legislation among all stakeholders - including the Centre and state tax departments - responsible for administering the new tax regime for their inputs before these are sent to the Empowered Committee of State Finance Ministers.
This would enable the committee to benefit from feedback before making its recommendations for commencing legislative processes. The government must obtain such feedback on proposed legislation and not make these a fait accompli for all concerned. Tax administrators at all levels should be able to participate in a well-structured training programme that would enable them to comply with the rules of the new system. Any shortcuts would spell disaster.
S K Choudhury Bengaluru
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