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GST Bill to be taken up for consideration and passage on Monday

27 Apr 2015 Evaluate

Amid stiff resistance by several opposition parties, the long-pending Bill on Goods and Services Tax (GST), which was moved in the Lok Sabha on Friday will be taken up for consideration  and passage on Monday. The Constitution (122nd Amendment) Bill, 2014, was moved on Friday by Finance Minister Arun Jaitley, who asserted this a “win-win” measure for both the Centre and the states in an effort to allay the apprehensions of some state governments who worried about revenue loss if this piece of legislation was passed.

However, the fate of this bill remains to be hanging given that this Constitution amendment bill requires two-thirds support in both the Houses and with Congress looking keen to create hurdles given that BJP blocked the same bill when it was in power, Modi led government will need deft political management, especially in Opposition-dominated Rajya Sabha, to ensure the bill's passage.

Notably, Congress Party along with those of the Left, TMC and NCP staged a walk out after their plea for referring the Constitution Amendment Bill to the Standing Committee was not accepted. However, government friendly parties AIADMK and BJD also opposed its consideration but did not walk out.

The Opposition members blamed that the government was “bull-dozing” and was quietly wanting to pass the bill, however the parties demanded more time to study the “new” legislation.

The crucial GST, which is expected to add 1-2% to the GDP by creating a national market for goods and removing distortions caused by multiple indirect taxes levied by the Centre, states and local bodies, was earlier supposed to be rolled out from April 1, 2010 but has been delayed due to resistance on the part of many states that feared a loss of revenue.

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