<div><em>The government feels that the Congress is isolated on the GST, but its support is crucial for passing the constitution amendment bill by a two-thirds majority in the Rajya Sabha, report <strong>Suman K Jha & Suchetana Ray</strong></em><br><br><br>The Modi government’s efforts to bring the Congress on board for the GST Constitution amendment Bill have so far yielded no results. The NDA government managers have been holding talks with Congress leader in Lok Sabha, Mallikarjun Kharge, and deputy leader of Opposition in Rajya Sabha, Anand Sharma. But the Congress has shown no signs of softening. The party is also insisting on its own amendments.</div><div> </div><div>“A special session on GST will not be productive. It’s not going to be viable,” deputy leader of Opposition in Rajya Sabha, Anand Sharma told BW|Businessworld.</div><div> </div><div>Asked if he didn’t agree with the April 1, 2016 deadline set by the Modi government for the rollout of GST, Sharma shot back: “Why this hurry? Who has set these deadlines?”</div><div> </div><div>The Congress is bent on paying back the BJP in its coin. The party claims, “the BJP had stalled Congress bids to introduce GST all these years”.</div><div> </div><div>Revenue Secretary Shaktikanta Das told Businessworld, “We are ready for rolling out GST Amendment Bill on 1st April 2016. Let’s see what happens with the Bill.”</div><div> </div><div>Congress wants certain changes in the Bill. Sources in finance ministry say that the main Opposition wants changes in the GST rate, insisting that it be fixed at 18 per cent. “We have to remember that fixing the GST rate is the prerogative of the GST council. And cannot be mandated in the GST Constitution Amendment Bill,” explains a source in finance ministry. A panel led by the chief economic advisor to the Finance Minister, Arvind Subramanian, is working on a revenue neutral rate for GST. Congress’ other demands include changes in the goods basket wherein tobacco and electricity should be within GST.</div><div> </div><div>Sources in the revenue department of the finance ministry point out that if the Amendment Bill is not passed at the earliest, GST will miss its deadline, yet again. The GST Amendment Bill after being passed by the Parliament will need to be passed by 50 per cent of the state Assemblies. And after that three more Bills will have to be passed before this landmark indirect tax reform becomes a reality. The CGST would be a Central law, the states would have to pass their own legislation which will based on the model legislation being prepared by the Centre, this will be the SGST. And then states would also have to approve iGST, which will deal with the inter-state movement of goods and services.</div><div> </div><div>As reported by BW| Businessworld on August 27, the Modi government has sounded out regional groupings, expected to support GST, on possible dates and agenda of the GST special session. The government wants a special session after the first week of September, and wants to get passed other legislations on which there is a by and large consensus. The government also feels that the Congress is isolated on the GST, but its support is crucial for passing the constitution amendment bill by a two-thirds majority in the Rajya Sabha.</div><div> </div>
