GST Bill Consensus Unravels - Again. Is Centre Own-Goaling On Tax Reform?

New Delhi: Finance Minister Arun Jaitley meets his counterparts from states today to discuss the Goods and Services Tax or GST Bill, which has run into more trouble just as the government and the Congress seemed to have arrived at common ground on it.

Mr Jaitley is expected to detail the changes in the bill that the Congress has demanded in return for its support in the Rajya Sabha, where the government is in a minority.

There was hope last week for the GST bill, frozen for nine months by the chill between the government and the Congress. They had agreed to allocate five hours to discuss and pass the bill in the upper house, a step forward though no date was set.

But the frost is back with the Enforcement Directorate, which handles financial crimes, launching an investigation against former Haryana Chief Minister BS Hooda of the Congress in the National Herald case, in which Congress chief Sonia Gandhi and her son Rahul already face trial. The case has been filed by the BJP's Subramanian Swamy

"Cooperation in the house for the interest of the country we are doing. But politically they are taking revenge," said Congress leader Mallikarjun Kharge. The Congress alleges that the government in fact does not want the bill now as it is worried that GST may trigger inflation.

Other opposition parties like the Janata Dal-United and Biju Janata Dal too have accused the government of scuttling its own bill, which implements a unified tax regime in the country.

Even BJP ally Shiv Sena asked why "the consensus exercise is being subverted" when "the Congress was coming around".

While the government denies the charge, none of its leaders are ready to explain on record why each time the Congress seems to soften on GST, either government agencies make a move against the Gandhis or the BJP sharpens its attack on the Congress' first family.

But BJP leaders admit that if GST rolls out by next year, it could trigger a price rise just when crucial assembly elections are being held in UP, Gujarat and other states. There is also apprehension that the BJP's loyal votebank of traders may revolt as GST will demand greater accountability from those who don't pay taxes.

Also, a senior NDA leader said, if the bill is passed with the Congress' help, "the BJP may lose the poll plank that the Congress is obstructing pro-reform measures."

Without the Congress, the single largest party with 60 of the Rajya Sabha's 245 members, the government will find it a stretch to pass the GST bill with the two-thirds majority needed.