New Delhi, on Tuesday, a majority of states backed the government on key issues which have been stalling the Goods and Services Tax or GST bill, raising hopes that with greater numbers backing the bill could be taken up in the Rajya Sabha or upper house in the current monsoon session of Parliament.
Meeting with union finance minister Arun Jaitley on Tuesday, most of his counterparts from states agreed that a cap on the rate of GST cannot be mentioned in the main bill that seeks to amend the constitution, isolating the Congress which has cited this as a key demand while stalling the legislation in the Rajya Sabha for nine months after the Lok Sabha passed it.
Bengal Finance Minister Amit Mitra, who heads an empowered committee of state finance ministers, said, "As you know that no tax rates are provided in the Constitution. It was discussed and a conclusion was reached that the Union Finance Minister will communicate to other parties. He will explain it to them that it can't come in the Constitutional Amendment but it can come in the GST Bill or GST Act".
The bill will provide a mechanism for that it was agreed today and also that businesses of less than Rs. 1.5 crore turnovers will be under their administrative control and not the centre's.
In parliament, a thaw between the Congress and the BJP-led government saw the two sides agree last week to block five hours to debate and pass the bill in the on-going monsoon session.
However, with the Left and most regional parties presenting a consensus on Tuesday, the government has the option to try and push the bill through the Rajya Sabha without the support of single-largest party Congress.
The bill seeks to amend the Constitution and so needs two-thirds of the house to vote in its favour.
