NEW DELHI: GST hopes brighten as government and Congress set to engage in 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.

About GST

“Goods and Services Tax” would be a comprehensive indirect tax on manufacture, sale and consumption of goods and services throughout India, to replace taxes levied by the Central and State governments. Goods and services tax would be levied and collected at each stage of sale or purchase of goods or services based on the input tax credit method. This method allows GST-registered businesses to claim tax credit to the value of GST they paid on purchase of goods or services as part of their normal commercial activity.