Congress Party Opposes The GST Bills in Present form in Lok Sabha
- Author: Joey Payne Mar 30, 2017,
Mar 30, 2017, 1:37
Jaitley said the four legislations will have to be passed by Parliament and one by each of the state assemblies to turn India into one market with a single tax rate.
The GST bill is coming for discussion but the Congress party has reservations to the manner it was brought in the Parliament and also to a few clauses in the bill.
Government has set a target of first of July for rollout of GST, which will subsume excise, service tax, VAT and other local levies.
On Monday, Union finance minister Arun Jaitley tabled the GST bill in Lok Sabha.
Jaitley also dismissed the contention that GST would erode the power of Parliament and state legislatures to levy taxes.
The Central Goods and Services Tax (GST) Bill 2017 will make provision for levy and collection of tax on intra-state supply of goods, services or both by the central government.
The rationale behind the additional cess is that this money will be needed to compensate the losses of the states against their projected revenues in the initial five years of the GST regime.
The Union Territory Goods and Services Tax Bill, 2017, will enable levy and collection of tax on intra-state supply of goods and services or both by the union territories. Yesterday, Jaitley had introduced the four GST Bills to implement the biggest tax reform since Independence.
"First of all, inflation will be controlled, secondly businessmen will feel more comfortable in carrying out their duties, thirdly manufacturing companies that are facing trouble in supply they will get a smooth experience and fourth, tax base will rise through which we will provide the public with better facilities", he said.
Service tax, at present, is levied on payments made for under-construction residential houses after providing abatement, which brings down the effective rate from 18 per cent to 6 per cent. The Congress led opposition decided that it would not accept GST amendment Bill in its present form and press for more amendments in the Rajya Sabha.
He said that the nature of economic activity today is changing and the objective of GST is to have "free flow of goods and services pan-India, with one tax and one interface with one assessing officer".
The government intends to roll out GST on July 1. The Parliament is likely to have nearly a seven-hour long discussion on the GST, which was started around 12 o' clock in Lok Sabha and is expected to countinue late evening.
CPI-M's Mohammed Salim said the bill would accentuate the divide between the haves and the have nots.
Jaitley was briefing the party MPs after BJP's parliamentary party meeting here which was also attended by Prime Minister Narendra Modi, Parliamentary Affairs Minister Ananth Kumar told reporters after the meeting.