Skip to main content

9 states may ratify GST Bill by Aug- end

Senior Union ministers have advised the nine Bharatiya Janata Party ( BJP)- ruled states to call special sessions of their legislative assemblies to ratify the Goods and Services Tax (GST) Constitution amendment Bill by the end of this month.
The Lok Sabha is slated to debate the Bill on Monday, a discussion in which Prime Minister Narendra Modi will intervene. Barring a tweet when the Rajya Sabha passed the Bill on Wednesday, the PM is yet to comment on the proposed legislation. Congress leader Jairam Ramesh has been critical of the PM’s absence during the debate in the Upper House, terming it ā€œModi mukt Parliamentā€.
After the Lok Sabha’s approval, the Bill will be sent for presidential reference. The government plans to transmit the Bill to states by August 10. Government strategists are trying to ensure that the requisite 16 of the 31 states ratify the Bill by the end of this month.
Finance Minister Arun Jaitley, Information and Broadcasting Minister Venkaiah Naidu and others have already spoken to nearly a dozen chief ministers of BJP as well as those of regional parties to call special sessions for this purpose. Maharashtra Assembly’s monsoon session ended on Friday. According to sources, Centre suggested Chief Minister Devendra Fadnavis that the session should not be prorogued but only adjourned sine die.
This will allow the BJP- Shiv Sena government to recommend to the state Governor to call a sitting at short notice. Once a session is prorogued, the Governor has to notify the special session, at least 14 to 21 days in advance.
Other than Maharashtra, both Goa and Assam have ongoing sessions that end on August 12. A senior minister has advised the chief ministers to extend the session by acouple of days. This means, Goa and Assam might become the first two states to ratify the Bill.
Of the non- BJP ruled states, Naidu has also reached out to Andhra Pradesh CM N Chandrababu Naidu. The Telugu Desam Party is an ally of the BJP. Of the Opposition- ruled states, Bihar CM Nitish Kumar has already promised Jaitley that his council of ministers would ask the Governor to call a special session to ratify the Bill.
Meanwhile, the PM will be in Hyderabad to attend a function hosted by Telangana CM K Chandresekhar Rao, another state that might hold a special session soon. West Bengal has already called for a special session from August 26 to 28 to approve a Bill seeking change the name of the state. It could take up the ratification of the GST Bill. State assemblies need to ratify a Constitution amendment by a simple majority.
Once ratified by half the states, the Bill would go to the President for his assent. This will initiate the process to set up the GST Council, which, in turn, will help the finance ministry to draft the Central GST and Integrated GST Bills, which would then be approved by the Union Cabinet and sent to Parliament.
The government on Friday secured a moral victory in the Rajya Sabha over the question of a Bill being categorised a Money Bill. After a long debate on a private members’ Bill to demand a special package for Andhra Pradesh, Deputy Chairman PJ Kurien ruled that the Rajya Sabha, according to the Constitution and Rules of Procedures of the House, has no power to take a call on the subject. He referred the issue to the Speaker of the Lok Sabha.
Earlier, Jaitley pointed to Articles 110 and 117 of the Constitution and Rule 186 ( 7) of procedural rules that the Andhra Pradesh Bill was a Money Bill as it talked of a special package for the state, and that only the Speaker can decide on the matter. Congress member Kapil Sibal said that by this logic nearly every Bill can be termed a Money Bill since all legislations have some impact on the Consolidated Fund of India. He said the trend will reduce the Rajya Sabha to a ā€œcipherā€. Talking to reporters, Sibal accused Jaitley of ā€œ spin doctoringā€ constitutional provisions at the behest of the PM.
The Congress and other parties have objected to government plans to bring CGST and IGST as money Bills in the winter session of Parliament. Jaitley on Thursday made it clear that there was no ambiguity in the Constitution that Bills which expressly talk of impact on the Consolidate Fund of India ā€œ shallā€ be deemed money Bills. The Rajya Sabha cannot vote on a money Bill.
Business Standard New Delhi, 06th August 2016

Comments

Popular posts from this blog

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...

After RBI rate cut, check latest home loan interest rates of top banks for loans above Rs 75 lakh

  The Reserve Bank of India (RBI) has reduced the repo rate by 25 basis points from 6.50% to 6.25% in its monetary policy review as announced on February 7, 2025. After the RBI repo rate cut, banks such as SBI, Canara Bank, PNB, and Union Bank among others have cut their repo linked lending rates. Most other banks are also expected to cut their lending rates in line with the RBI rate cut. After banks cut their lending rates, their home loan borrowers will have to pay less interest. Normally, when a lender cuts the lending rate, borrowers get two options: Either to go for a reduction in EMIs or reduce the tenure of the loan. The second option will help the borrowers clear their home loan outstanding faster. In case, the borrower goes for reduction in EMI then the lower lending rate of the lender would mean lower Equated Monthly Installment (EMI) for borrowers.   EMI is the amount you will pay on a specific date each month till the loan is repaid in full.A repo rate-linked home ...