SINGH STAYS THE KING, WITH MORE BLING
- November 30, 2015
- Posted by: Indirect Tax Professionals
- Category: News
The Narendra Modi government has pinned its hopes on the “wisdom” of former prime minister Manmohan Singh to get Congress to come around on the GST issue and facilitate passage of the crucial reform legislation in the current session of Parliament.
Sonia Gandhi, sources added, listened closely to the details of the government’s case and was “open minded” to arguments by Finance Minister Arun Jaitley on some of the Congress demands.
The prime minister requested Manmohan Singh to contact him on any issue related to the GST Bill. “You are a senior. You can ring me any time on issues that need our serious consideration,”.
The fact that Sonia Gandhi appeared open to the points made by the ministers has further raised government hopes.
Another top government functionary aware of the deliberations, indicated that the government was prepared to accommodate demands raised by the Congress if the opposition party signals a clear political intent to pass the Bill.
“If Congress indicates its willingness to allow the passage of GST, we deliberations soon after Sonia and Singh’s meeting with the prime minister on Friday evening, Jaitley ensured there were no personal attacks on the Congress leadership during the discussion on the Constitution in the Rajya Sabha. THREE ISSUES While Congress has proclaimed its commitment to the GST, its insistence on fixing 18% cap, setting up an independent dispute settling tribunal in the GST Council and scrapping the 1% int ..
As putting in place GST requires a constitutional amendment, it needs a two-thirds majority in the Upper House where the government is in a minority. During the meeting, Finance Minister Arun Jaitley explained some of the problems associated with these suggestions. He pointed out that fixing a tax rate of 18% in the legislation would entail a uniform tax on luxury and essential goods alike. Jaitley, during the meeting, is believed to have underlined the need for a “differentiated tax” for different categories goods to meet.
Source: The Economic Times