Finance Minister Arun Jaitley met leaders of five parties in Rajya Sabha and apprised them about the progress made in bringing a consensus on the Goods and Services Tax.
Jaitley reportedly told them that the Centre has taken enough measures to ensure that the States will not lose any revenues when the GST regime is implemented. He has also told them that the Centre is keen to pass the Bill during the ongoing Monsoon session of Parliament.
A leader, who participated in the meeting, said later on the condition of anonymity that the government is not very keen on bringing the Constitution Amendment on GST in this session. “We may have to wait till the next Budget session. The BJP wants to take the maximum political mileage out of it. They are in no hurry,” the leader added.
Speaking to reporters after the meeting, CPI(M) leader Sitaram Yechury said States will lose their right to raise resources through sales tax, surcharge or cess when the GST regime comes in force. Yechury said States will have to come with a begging bowl to the Centre, placing them at the Centre’s mercy.
He said the GST Bill does not deal with Centre-State relations. “So, a resolution has to be found outside the Bill and the government has to come out with an assurance,” he said.
He expressed unhappiness over Jaitley’s move to reach out to non-Congress parties. “We were merely informed about the discussion the government had with the Congress. There was no scope for a discussion,” he said.
A Congress leader told BusinessLine that the amendments by the Cabinet contain just one proposal of the Congress. “The Centre is silent on two key issues such as a cap on the GST rate and the weightage to Centre in the proposed GST council. So, nothing has changed till now,” the leader added.
The Left parties have been alleging that a decision on GST cannot be taken by the Congress and the BJP.
The meeting was attended by SP, BJD, CPI, Trinamool Congress and CPI(M) leaders in Rajya Sabha.
While Trinamool Congress is in support of the Bill, BJD wants an additional tax for mine-rich States. The Left parties have been saying that the Bill is pro-corporate houses.