GST bill debated in Rajya Sabha. Congress P Chidambaram asks government for assurance.
Highlights
- GST is national Goods and Services Tax, replaces multiple levies
- Congress agrees to back landmark reform
- But only Lok Sabha cannot decide GST rate, says Congress
Ahead of parliament clearing a national Goods and Services Tax or GST for the country, the Congress today said that the government has its support. With a "but".
A bill that will decide the rate of the tax must be put to debate and vote in both houses of parliament and not just the Lok Sabha where the government has a huge majority, said Congress leader P Chidambaram. His party says unless GST has to be capped at 17-18%, it will burden consumers too heavily.
Today, the Rajya Sabha appears ready to approve an amendment to the constitution that gives the government new taxation powers.
The actual GST rate will be decided over the next few months in consultation with state governments; it will then be brought for review to parliament in separate legislation.
"This is far too important legislation which will impact the next 50-100 years," said Mr Chidambaram, who was Finance Minister in the former Congress-led government.
Therefore, he stressed, the next GST proposal must be treated as a Finance Bill and not a Money Bill.
While the former is debated and voted upon by both houses, the latter cannot be rejected by the Rajya Sabha, which can only recommend changes.
The government has a firm majority in the Lok Sabha, but is in a minority in the Rajya Sabha, which is where opposition parties especially the Congress, which has the most members in the Upper House, can block a proposal - or use their strength to force revisions. The Congress successfully lobbied today with smaller parties to back its demand that the GST rate must get the Rajya Sabha's approval.
A GST Council combining representatives of the Centre with state governments, with decision-making powers skewed towards them, will decide on the tax rate to be submitted to parliament for its review.