New Delhi, April 24: The long-pending Goods and Services Tax (GST) Bill was Friday moved in the Lok Sabha for consideration amid stiff resistance by several Opposition parties, amid opposition by several opposition parties, including Biju Janata Dal (BJD).
Union finance minister Arun Jaitley said it is a “win-win” measure and states have nothing to fear.
Members of the Congress, led by party president Sonia Gandhi, along with those of TMC, Left and NCP staged a walkout after their plea for referring the Constitution Amendment Bill to the standing committee was not accepted.
The AIADMK and the BJD also opposed its consideration but did not walk out.
The Opposition members, who alleged that the government was “bulldozing” and bringing the Bill in a “hush hush” manner, wanted more time to study the “new” legislation and meanwhile finish financial business.
Jaitley assured all cooperation from government to complete the business of demands for grants of various ministries before April 28.
After hour-long wrangling over the procedures between the ruling and the opposition parties, the Bill was taken up when Speaker Sumitra Mahajan ruled that it is an important legislation on which the finance minister can make introductory comments and a discussion can be taken up at a later date.
“GST is going to lead to a win-win situation as far as the Centre and the states are concerned. It is going to raise India’s GDP. It is going to raise India’s revenue and therefore I commend GST Constitution Amendment Bill to the House for (consideration),” the finance minister said.
The finance minister sought to assuage fears of states that they will lose out on revenues once GST is implemented. The Centre and the states will have concurrent power to levy tax on goods and services, he said.
When Value Added Tax (VAT) was introduced, states demanded compensation for more than five years.
However, not a single state asked for compensation in the sixth year, he pointed out.
“Therefore, please do not have this fear (of revenue loss on account of GST implementation),” he said. Besides ease of doing business, GST will help “trade to grow and taxation of states will not be lost in any manner”, he said. PTI