Will Make No Changes To GST Enabling Bills: Congress

The Congress is not inclined to move any amendments to the Goods and Services Tax (GST) enabling bills in the Rajya Sabha but may support the amendments moved by other opposition parties. Party leaders will meet on Thursday to decide whether to support the amendments moved by other parties on GST bills, people privy to the matter said.

The same people also confirmed that the top party leaders discussed various aspects of the GST bills and came to the view that the party would not oppose those since the first GST Bill proposed by then Finance Minister Pranab Mukherjee included the proposal for formation of the GST Council.

However, Congress Vice President Rahul Gandhi met CPI-M General Secretary Sitaram Yechury in the afternoon and discussed the opposition strategy to be adopted in the upper house.

Congress leader Jairam Ramesh had moved an amendment to the GST bills proposing that anything passed by the GST Council should also get parliamentary approval. "It was discussed and a consensus emerged where it was decided that this amendment is not going to be taken forward as the Congress party's amendment," party Spokesperson Rajeev Gowda told reporters.

He said it is not going to be pressed because ultimately it opens up issues with regard to powers of parliament and those of the GST Council "as states also could come forward and say we also want to ratify whatever is being proposed to be passed. This will be like going back in a particular manner".

Gowda said the purpose of the amendment is that parliament should be kept in the loop on any decision regarding financial legislation "but it seems that this amendment will not be pressed in the interest of federal structure of the country".

He said this government has a "terrible record" when it comes to indirect taxation.

The Congress leader hoped that the GST regime would ensure a reduction in the number of tax slabs in a time-bound manner.

Gowda said while the tax rates in India are routinely 18 percent, in developed countries these are less than 17 percent. In emerging economies, these rates average around 16.6 percent.

Gowda also hoped that during the transition period, the government will make sure taxpayers are enabled to participate in the GST regime in the smoothest possible manner. He said this Bill will enable elimination of inter-state check-posts and facilitate smooth movement of traffic and freight between states.