However, the Congress, while agreeing in-principle to GST, has filed a dissent note seeking to cap the tax rate at 18 per cent. The Congress also wants the Centre’s representation in the GST Council, which will oversee the implementation of the new tax regime, to be reduced to one-fourth from the current proposal of a third.
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The GST Bill has been passed by the Lok Sabha, and was referred for scrutiny to the Select Committee by the Rajya Sabha, where the ruling NDA government does not enjoy majority.
Sources said the Congress members said they are unable to support a GST Bill that excludes indefinitely from the purview of the GST tobacco and tobacco products, alcohol for human consumption, and electricity supply and consumption, while proposing that all three be included in Clause 12 of the bill with the condition that the GST Council take a decision for their inclusion in the GST within five years.
The Bill is likely to come up in the Rajya Sabha during the Monsoon Session of Parliament, which begins on Tuesday.
The earlier model stated the compensation can be paid for “as much as 5 years“.
Kumar said that GST rollout strategy provides two options to the State Governments for creating GST infrastructure.
Senior ministers in the government are trying to convince All India Anna Dravida Munnetra Kazhagam leaders not to vote against the bill when it is taken up in Parliament.
“The real question is if the Rajya Sabha will function or not”. It, however, did not get support from most of the other parties.
“While we welcome the adoption of the report by the Rajya Sabha select committee on the Constitution amendment bill, the 1% non-creditable origin tax on inter-state supply of goods remains an area of serious concern for the industry and hope the government finds an effective solution to this distortion”. The Opposition parties also wanted the word “may” to be changed to “shall” in the clause.
Its opposition to the measure compelled Modi to send the bill, after its passage in the lower house in the last session, to a parliamentary panel for a review.
The MPs declined to be named as the report has yet to be discussed by parliament.
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“The government will do its best to stick to the April 2016 deadline”, he added, speaking on the sidelines of a function in New Delhi.
