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Congress is preparing a dissent note on the long-pending GST bill as a Parliamentary panel looking into the legislation gets ready to adopt its report on Monday for presentation to the Rajya Sabha next week.
With the scheduled date for submitting the report coming close, the Select Committee of the Rajya Sabha today discussed the bill clause-by-clause, sources said.
The Committee, headed by Bhupender Yadav, is likely to finalise its report in the next meeting on Monday. It has to present the report by July 24, within days of the commencement of the monsoon session of Parliament.
Meanwhile, Congress, the main Opposition party in the Upper House, is preparing a dissent note saying it cannot support a bill which is not “simple and comprehensive”, said a source.
While Congress is in favour of the proposed indirect tax regime, it wants a ceiling of 18 per cent on the GST tax rate. It is also against the power to states to levy 1 per cent additional tax as it would have a cascading effect and cause market disruptions.
Sources further said the Left parties too are likely to come out with a dissent note.
The GST bill has been passed by the Lok Sabha and was referred to the select committee by the Rajya Sabha, where the ruling NDA government does not enjoy a majority. The Government aims to roll out GST from April 1, 2016.
Sources also said Congress wants the Centre’s representation in the GST Council, which will oversee the implementation of the new tax regime, should be reduced and states voice should be increased to three-fourth.
Also, it wants tobacco, alcohol and electricity supply to be brought in the ambit of GST.
The GST bill proposes compensation to states for five years for their revenue losses, but the Congress wants a GST Compensation Fund to be set up under the supervision of the GST Council.
Since GST is a constitution amendment bill, it has to be passed with a two-thirds majority in the Rajya Sabha. It will also have to be ratified by 50 per cent of the states.
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