GST Bill: Jaitley makes another attempt to get Congress on board

Finance Minister Arun Jaitley made another effort to evolve a consensus on the Goods and Services Tax Bill. Replying to the debate on the Finance Bill in the Rajya Sabha on Wednesday, where the GST Bill is pending, he requested the Opposition Congress to reconsider its stand on the legislation so that it can be taken up during the Monsoon session. The Upper House returned Finance Bill and Appropriation Bill without any suggestions.

On the Congress’s demand for doing away with the one per cent additional tax for manufacturing States, Jaitley said it was consensus evolved at the panel of State Finance Ministers. He, however, said will go back to the States and persuade them to drop the additional tax keeping in mind the suggestion from the Congress.

On the Congress’s suggestion to create a dispute redressal mechanism headed by a Supreme Court judge, Jaitley said such a move will be like giving powers to the judiciary to decide on the legislative’s power, taxation. Attacking judicial activism, he said “step by step, brick by brick” courts are encroaching into the powers of legislature. He asked the Congress not to allow the judiciary to enter into matters of taxation, a prerogative of legislature.

On the issue of capping the GST to 18 per cent too, he said the Congress’s demand is not realistic. He said capping will handicap the States’ and the Centre’s power to tax luxury items. He said he favours dropping of Article 276, where professional tax is capped at ₹2,500.

Earlier, participating in the debate, Congress leader Jairam Ramesh raked up the issue of corruption in Gujarat State Petroleum Corporation. He demanded a probe into it and asked the Centre not be selective in investigating non-performing asserts cases. Jaitley and Petroleum Minister Dharmendra Pradhan said issue of a State PSU cannot be taken up at the Rajya Sabha.

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