Skip to main content

Govt sanguine about GST passage minus Cong leg-up

On completion of its two years in office, a euphoric Bharatiya Janata Party (BJP) government has asserted that the goods and services tax (GST) Bill will be taken up in the monsoon session of Parliament and passed even without the help of the Congress. The government is banking on help from regional parties and rejigged numbers in the Rajya Sabha. Also bolstering the government's hopes was the support announced by the Trinamool Congress for the GST Bill, soon after its victory in the Assembly polls.
With 55 members set to retire from the Rajya Sabha, 15 states will be electing Members of Parliament (MPs) to the Upper House. Incidentally, this does not include Assam, Kerala and West Bengal where Assembly polls were recently held.
Uttar Pradesh (11 seats), Tamil Nadu (six) and Maharashtra (six), Bihar (five), Andhra Pradesh (four), Karnataka (four), and Rajasthan (four) are among the states that will conduct elections to the Upper House. The BJP has 15 MPs retiring and stands to improve its tally from 49 to 53. Of the 13 seats the Congress will vacate, it is likely to be re-elected to nine, bringing its number down to 60. It will continue to be the single largest party in the House.
The BJP is confident that barring the Congress, most other political parties of the Opposition side will extend support to the landmark constitutional amendment for a GST.
However, J Jayalalithaa-led All India Anna Dravida Munnetra Kazhagam (AIADMK) is strongly opposed to the Bill but the BJP is hopeful that the AIADMK might abstain from voting, bringing down the required two-thirds majority mark or the magic number required to pass the GST Bill. The number required to pass the Bill in a House of 242 members is 162. Since GST is seen as inimical to Tamil Nadu's interests, the Dravida Munnetra Kazhagam (DMK), too, would oppose the Bill in all likelihood, though the party has only six MPs.
Govt sanguine about GST passage minus Cong leg-up Given the fact that even the Janata Dal (United), or JD(U), the Rashtriya Janata Dal and the Left parties are not interested in opposing the GST legislation, the government is hopeful that the Bill will see the light of day. BJP's friend-turned-foe Nitish Kumar was astute enough to state that his party - the JD(U) - would support the Bill but the onus of getting it passed was on the government. Interestingly, both the Uttar Pradesh parties have expressed their reservations about the BJP-led government's policies but have said they will support the GST Bill, in the interest of the nation.
Given the numbers, the government would be able to get the Bill passed but it would be a close shave, unless it can bring the DMK on board.
The Congress has been demanding that the government give in to its demand of capping the GST rate and including the same in the Bill. If the Congress continues its opposition, it would end up being isolated and risk a loss of face, if the Bill was to get cleared despite its opposition.
Senior Congress leaders concede that being the original creators of the GST, they are not opposed to it but the final call will be taken by Congress Vice-President Rahul Gandhi.
Attacking the BJP-led National Democratic Alliance government over its handling of the economy, Congress party leaders on Saturday asked it to pluck up courage to go for bold reforms, saying the party will engage with the government if it means business. On the GST Bill, Chidambaram had said, the government has failed to engage the Congress party over the three principal objections raised by it. "Either the government should convince us that our objections are unfounded or government must accept our objections if they are well founded and bring about amendments. Such an engagement, such a dialogue, to best of my knowledge, has not taken place across the table," he had said.
Despite the numbers being favourable, the government will have to ensure that the Congress does not disturb proceedings in Parliament, as it is an essential requirement for the passage of a constitutional amendment legislation.
Business Standard New Delhi, 30th May 2016

Comments

Popular posts from this blog

GST collection for November rises by 8.5% to Rs.1.82 trillion

  New Delhi: Driven by festive demand, the Goods and Services Tax (GST) collections for the Union and state governments climbed to Rs.1.82 trillion in November, marking an 8.5% year-on-year growth, according to official data released on Sunday. Sequentially, however, the latest collection figures are lower than the Rs.1.87 trillion reported in October, which was the second highest reported so far since the new indirect tax regime was introduced in 2017. The highest-ever GST collection of Rs.2.1 trillion was reported in April. The consumption tax figures highlight the positive impact of the recent festive season on goods purchases, providing a much-needed boost the industry had been anticipating. The uptick in GST collections driven by festive demand had been anticipated by policymakers, who remain optimistic about sustained growth in rural consumption and an improvement in urban demand. The Ministry of Finance, in its latest monthly economic review released last week, stated that I...

Budget: Startup sector gets new Fund of Funds, FM to allocate Rs 10K cr

  The Indian startup sector received a boost with Finance Minister Nirmala Sitharaman announcing the establishment of a new fund of funds (FoF) in the Budget 2025. The minister unveiled a fresh FoF with an expanded scope, allocating Rs 10,000 crore. The initial fund of funds announced by the government with an investment of Rs 10,000 crore successfully catalysed commitments worth Rs 91,000 crore, the minister said.   ā€œThe renewal of the Rs 10,000 crore commitment to the Fund of Funds for alternative investment funds (AIFs) is a significant step forward for the Indian startup and investment ecosystem. The initial Rs 10,000 crore commitment catalysed Rs 91,000 crore in investments, and I fully expect this fresh infusion to attract an additional Rs 1 lakh to Rs 1.5 lakh crore in capital,ā€ said Anirudh Damani, managing partner, Artha Venture Funds.   Damani further added that this initiative will provide much-needed growth capital to early-stage startups, further strengthenin...