On GST, Congress, Government In Talks For Breakthrough: Sources

New Delhi: The Opposition Congress has indicated it may be ready to from one of its most steadfast demands over the Goods and Tax Services Bill, stalled for years, but wants more "nuanced changes" before the crucial legislation can be passed in the Rajya Sabha, say sources.

Finance Minister Arun Jaitley held the second round of formal talks with Congress' deputy leader in the Rajya Sabha Anand Sharma.

While it seeks "more than cosmetic changes" to the constitutional amendment bill, the Congress is indicating it may be ready to climb down on one of the most contentious issues - adding a cap to the new unified tax to keep it below 18 per cent, the sources said.

Though the frost is gone, the Congress is said to be indulging in some tough bargaining. The government on its part has agreed to two of its other demands - abolishing the 1 per cent surcharge proposed to benefit manufacturing states and strengthening the grievance redressal and dispute resolution.

A senior BJP leader on the condition of anonymity said, "The discussions are over both the micro and the macro elements. The Congress which created the Bill is working towards a situation where it can have its stamp on the final Bill."

Prime Minister Narendra Modi, sensing the mood, had said on Saturday, "GST is of national importance. Issue is not which government gets credit."

With the Congress agreeing for a debate in Parliament over the bill, discussions are still on over several elements of the one-tax-for-all-India which has been awaiting a Parliaments nod for several years.

But the Congress returned to the discussion table after the PM's outreach on GST - when he met Congress President Sonia Gandhi and former Prime Minister Manmohan Singh - only after parties in the Opposition stood up for the Bill - isolating the main Opposition party.

The move followed PM Modi asking his ministers on Monday not to ignore regional parties and continue talking to them. The signal came after the Samajwadi Party which supports GST complained that the government was courting Congress and ignoring others.

Also, the Left's demand for an all-party meet on GST is facing resistance from the Congress. "The Congress doesn't want to get isolated," said a leader from the Trinamool Congress which supports the Bill.

To keep the Opposition in good humour, the government is being visibly flexible. It said yes to a Congress demand for a discussion on the Kashmir unrest ahead of legislative business in Rajya Sabha.

It also withdrew the controversial Enemy Property Bill, opposed by the Janata Dal United and the Left, listed for passing on Monday.