The time of winter session, a lot of clamor is going on in parliament regarding the important regime GST. The opposition parties have their own demand on GST and have created difficult situations for the BJP government to roll-out the Bill on its deadline. Between hubbub of parliament, the Indian government may take decision towards the much-awaited crucial reform-Goods and Service Tax. The government may scrap 1% inter-state tax as the main opposition party-Congress wants to remove this addition tax. If the government accepts this demand of opposition then the Bill will be passed on 1st April, 2016, otherwise it may be missed-out from its deadline.
Therefore, the ruling BJP and Indian Prime Minister-Narendra Modi is contacting to Congress for making a compromise on GST. Recently, the PM Modi has invited senior leaders of Congress-Manmohan and Sonia Gandhi for Tea at his residential house to discuss on GST panel. According to closer sources, the BJP is likely to confess the demand of Congress of 1% inter-state tax on sales. This addition tax was introduced to restitute manufacturing states such as Maharashtra, Gujarat and Tamil Nadu. Government sources have revealed that the Congress also wants to reduce the GST rate in the Constitution that is not acceptable.
Today the Chief Economic Advisor, Mr. Arvind Subramanian may submit the report on a revenue neutral rate for GST. This report will help to take a vital step in setting GST rates for the GST Council. According to the sources, the Indian government is willing to keep rates admittable, therefore any inflationary effects of the tax is contained. The ruling Bhartiya Janta party is keen to talk with all the stakeholders on board.
See Related: GST Rate May be Decreased to Pass the Bill
The biggest reform will also help in making of the GST Council, opposition party-Congress had already demanded a three-fourths vote in the GST Council for states. The Congress’s leader told, “We also want a good GST… we are willing to take it up”.
