This Article is From Jul 29, 2016

'Fingers Crossed' Says Arun Jaitley, GST In Rajya Sabha Next Week: 10 Updates

'Fingers Crossed' Says Arun Jaitley, GST In Rajya Sabha Next Week: 10 Updates

Arun Jaitley has held multiple meetings with opposition leaders over the GST Bill

New Delhi: With most parties tilting to a yes on GST, the government has listed the crucial Goods and Services Tax or GST bill in next week's agenda for the Rajya Sabha or Upper House of the parliament.

Here are the 10 latest developments in this story:

  1. "We have our fingers crossed," said Finance Minister Arun Jaitley who has led the government's outreach to the Congress and other opposition parties for their support on the crucial tax reform.

  2. A date has not been announced for a five-hour debate on the bill, but sources said it was likely to be presented and discussed in the House next Tuesday, August 2.

  3. Minister of State for Parliamentary Affairs Muqtar Abbas Naqvi said, "Most of the parties are on board."

  4. "Some progress has been made....there can be an outcome" said sources close to Rahul Gandhi, whose Congress party has so far blocked the GST reform in the Rajya Sabha

  5. The government has cleared substantial changes to win support from the Congress and other parties. The cabinet has cancelled a 1% inter-state tax, vetoed by the Congress, which had been sanctioned for states that manufacture foods to offset losses from GST, which will earn governments revenue from consumption.

  6. In exchange for the cancelled tax, the Centre will compensate manufacturing states like Tamil Nadu which will lose revenue, for the next five years. The GST is a single national tax that replaces an intricate mesh of tariffs.

  7. The Centre has also agreed to give states more power in an independent body that would resolve disputes over revenue sharing, it was decided at a meeting that Mr Jaitley held with finance ministers from states this week.

  8. For the tax reform to become a reality, the government needs not only the backing of states - seven of them ruled by the Congress - but also of two-thirds members in the opposition-dominated Rajya Sabha to pass an amendment to the constitution.

  9. The Congress has held up the reform so far arguing that the tax rate must be capped at 18 per cent, though it has reportedly agreed that the limit need not be stated in the new law.

  10. Regional parties like the Biju Janata Dal and the Trinamool Congress are backing the bill. The AIADMK, which governs Tamil Nadu and has 13 Rajya Sabha members, is not and government sources say they hope the party will walk out during a vote, which will help in reducing the number of votes needed for the bill to go through.



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