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The wait for the Goods and Services Tax (GST) regime just got longer with the government deciding to ask President Pranab Mukherjee to prorogue (end) the Monsoon Session of Parliament. The Centre’s decision came after its efforts to woo the main Opposition party, the Congress, failed.
“Ever since the Session ended we have been talking to Congress as there were indications that they might allow Parliament to work without disruptions. But, now we understand they are unlikely to change their stance; therefore, the Cabinet Committee on Parliamentary Affairs (CCPA) today decided to ask the President to prorogue the Monsoon Session,” said Finance Minister Arun Jaitley, addressing newspersons after the CCPA meeting.
Blaming the Congress for the disruptions in Parliament, which have prevented passage of the GST Bill, Jaitley said: “We are not giving up. We will continue to talk to all the parties. And if the situation changes, the CCPA will take a call.”
The Congress has been disrupting parliament seeking the resignation of BJP leaders engulfed in controversies. On Tuesday, Congress’ Ghulam Nabi Azad, Opposition leader in the Rajya Sabha, said there was no scope for an extended session until the resignation of senior BJP leaders Sushma Swaraj and Vasundhara Raje for LalitGate and Shivraj Singh Chouhan for the Vyapam scam.
The government had kept the 21-day Monsoon Session, which began on July 21, alive to woo the Opposition on this crucial tax law. On whether the GST deadline of April 1, 2016, would be met, Jaitley said: “Your guess is as good as mine.”
“We were hoping that all political parties will display statesmanship at a time when India is trying to emerge as a strong economy in the midst of global slowdown,” said Jaitley.
Congress response The Congress, however, blamed the BJP for the delay in the passage of the Bill. “People know well who did what on the GST Bill. Certain issues in the Bill are non-negotiable for us. The government should address those issues,” said Congress General Secretary CP Joshi.
Primarily, the party wants a cap on the GST rate at 18 per cent; addition of more items such as tobacco, alcohol and electricity in the GST list; the additional 1 per cent tax for manufacturing States done away with, and compensation for States’ local governments.
Tough passage For the Constitution Amendment Bill to be passed, the House has to be in order and at least two-thirds of the members ‘present and voting’ have to approve the Bill.
Since the Select Panel of the Rajya Sabha has given its report, the revised Bill will first need to be passed in the Upper House. But the government is in a minority in the Rajya Sabha. However, a confident Jaitley said this would change in April 2016.
Now, the only option is to take up the Bill in the Winter Session.
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