GST hopes brighten, government plans 5-hour debate in Rajya Sabha

NEW DELHI: The prospects of the GST bill seem to have further brightened with government and Congress set to engage in further consultations over the long pending tax reform and the parliamentary affairs ministry planning a five-hour debate in Rajya Sabha. However the date is not set yet. After the government expressed hope for a consensus and narrowing of differences with Congress, PM Narendra Modi on Monday told the

BJP parliamentary party executive that efforts should be made to reach out to other parties as well. The agreement to have a debate and the demand of regional parties to be consulted itself seemed to suggest progress, considering that the differences looked irreconcilable not long ago.

The PM's remarks came after Samajwadi Party leader Naresh Agarwal complained that the bill was becoming a bilateral affair between BJP and Congress and warned that his party could stall the legislation. CPM leader Sitaram Yechury has also called for more consultations over the legislation.

The decision to plan a five-hour debate is seen as a sign that an understanding on Congress's demand that a tax rate of 18 per cent be "ring fenced" could be in the offing, with the government agreeing to it in the central GST law which will be enacted after Parliament and state legislatures approve the constitution amendment bill pending in Rajya Sabha.

The Centre is considering discussions with individual parties rather than an all-party meeting as it looks to address Congress's demand for a "guarantee" that the tax rate will be capped at 18 per cent. Congress has indicated it wants the government to thrash out the issue with the principal opposition party before talking to other outfits. "Ours are the main objections and they have to be addressed," a senior leader said. The two sides have so far discussed proposals to reconcile Congress's demands for a tax cap of 18 per cent, abolition of 1 per cent surcharge and creation of a dispute redressal mechanism other than the proposed GST council.

BJP leaders like finance minister Arun Jaitley have held several rounds of formal and informal discussions with Congress leaders and the exchanges are now focussing on resolving the nitty-gritties of the legislation. There seems to be concern in Congress that an all-party meeting might serve to highlight its isolation on the issue and dilute its capacity to insist on certain provisions.

Talking to reporters, Congress member Anand Sharma said, "There has to be a tax cap. We cannot leave it to executive arbitrage. So we said it to be ring fenced." He added that 1 per cent surcharge was not acceptable.