Lawmakers ask govt to debate GST-enabling laws in Upper House

The Elders on Wednesday sought assurance from the NDA government to return to the Rajya Sabha with the GST enabling legislation.

The lawmakers are worried that the government may bypass the Upper House
completely.

“This is a very important legislation, one that will impact the country for the next 50-100 years. We want an assurance from the government that these (future) bills would be brought in the Upper House as financial bills and not be treated like a money bill,” said Chidambaram.

The former finance minister’s concerns follow the government’s reluctance to allow a discussion on a private member’s legislation — Andhra Pradesh Reorganisation (Amendment) Bill — suggesting it could not be debated in the Rajya Sabha as it was a money bill.

The private member’s bill seeking special status for Andhra Pradesh post its bifurcation could not be discussed in the Upper House though it was listed on the business schedule.

Chidambaram's worries were shared by CPM's Sitaram Yechury and JD(U)’s Sharad Yadav, who too asked the government to return to the Upper House with the enabling legislation, which would also elaborate on how the resources would be shared with the states.

“We cannot be deprived of our right to show the red flag in the interest of people,” said Yechury, with a reference to the Upper House of Indian Parliament which follows the British Parliament Westminster’s practice of using red as its colour code.

The enabling GST legislation, Yechury said, should show some flexibility towards the states so that they don’t have to come to the Centre every time with a begging bowl.

“More than 90% of the Indian families earn less than Rs 10,000 a month. At the same time, the number of billionaires increased to 150 from 100. We should now allow creation of two Indias within our country,” he said.

Terming GST as a regressive tax, the CPM leader said GST should be kept low as it would burden the poor more.

Already, 62.3% of the tax revenue comes from indirect taxes. In the last budget, indirect taxes were hiked by Rs 20,000 crore, whereas, direct taxes were reduced by Rs 1,000 crore.

 “The government is enriching the rich and burdening the poor. If you do not have a cap on the GST, it will increasingly be a regressive tax to burden the people,” Yechury said.
DH News Service

2003   Kelkar Task Force on indirect tax suggests GST
2006   Budget proposes to introduce GST by April 1, 2010
- Draft design and roadmap for GST assigned to Empowered Committee of State Finance Ministers (EC)
2009   EC relea.ses discussion paper in Nov
2011   Constitution (115th Amendment) Bill introduced in the Lok Sabha in March
Bill goes to Standing Committee on Finance
2013   Committee suggests 3 panels for GST rate, threshold, exemptions and control
- Final draft Constitutional Amendment Bill incorporating above changes sent to EC
2014   The 115th Constitutional (Amendment) Bill lapsed with dissolution of the 15th Lok Sabha
June: draft Constitution Amendment Bill sent to EC after approval by new NDA govt
Dec: Based on a broad consensus reached with the EC, Cabinet approves proposal to introduce GST Bill
Dec 19: Bill introduced in the Lok Sabha
2015
May 6: Bill passed by the Lok Sabha
Again referred to Select Committee of the Rajya Sabha, which submitted its report on July 22, 2015.
July 22: Select committee submits report

2016
July: Govt moves amendments after consulting Cong and other parties
Aug 3: GST finally passed in the Rajya Sabha

AIADMK members stage walkout
The AIADMK on Wednesday walked out of the Rajya Sabha without voting on the GST Bill, saying it violates the fiscal autonomy of the states, DHNS reports. The Jayalalithaa-led party was the only one to walk out stating that Tamil Nadu’s interests were not protected. AIADMK MPNavaneetha Krishnan, said the Bill was “not valid” and it violates the states’ fiscal autonomy. “It will cause a permanent revenue loss to Tamil Nadu. We oppose it. The bill violates federalism. It also violates Article 21 of the Constitution,” Krishnan said.