Goods And Services Tax (“GST”): Updates

As we all know the Select Committee constituted to examine the Constitution (122nd Amendment) Bill, 2014 submitted its report to Rajya Sabha on July 22, 2015. The same was subsequently approved by the Union Cabinet. However, the law makers ended the Monsoon Parliament session without approving the much awaited 122nd Constitutional Amendment on GST. The Monsoon session of the Parliament has been a complete washout. The Rajya Sabha adjourned sine die and the Centre’s most important reform Bill remained in the Upper House without it being passed.

Let’s have a glance on the Monsoon Session and understand what our law makers did during the session. The 236th Session of Rajya Sabha commenced on Tuesday July 21st 2015 and ended on August 13, 2015. The session had 17 sittings in all and the House sat for more than 9 hours. During the Session, more than 82 hours were lost on issues like (a) alleged facilitation of British Travel documents by the Minister of External Affairs and filing of an affidavit by the present Chief Minister of Rajasthan to support the application of an Indian citizen wanted by Law and Enforcement Agencies in India, (b) Vyapam scam, (c) non-implementation of the assurance by Government to grant special status to Andhra Pradesh, (d) suspension of some Congress Members by the Speaker, Lok Sabha, (e) signing of Naga Peace Accord without consulting Chief Ministers of North Eastern States, (f) appointment of Governor of Bihar without consulting the State Government.

Now, an online petition which has been signed by 15000 people including some of the top industrialist of India had appealed to the Congress-led opposition to end the disruptions in the Rajya Sabha. According to the government strategist, the Government might even call a special session. However, such decision will need to have the opposition, particularly the Congress on board and will need to factor in the Bihar State polls as well as the festival of Rakshabandhan due on August 29, 2015.

It is relevant to mention here that though the President is empowered under Article 108 of the Constitution of India to summon a joint session of the Parliament on the advice of the Government for the purpose of deliberating and voting on the Bill, however, in my view such option would not be feasible as Rajya Sabha has not rejected the bill so far and this Constitutional Amendment needs to be passed separately in each house by a two third majority of members, present and voting.

It is hard for the government to meet the deadline to roll out the regime of GST from April 01, 2016. However, another Government strategist expressed the hope that the deadline could still be met if the winter session of the Parliament could be advanced and at least half the States ratify the GST Bill soon after it is passed by the Parliament, enabling the two Houses to take up other GST related Bills in the Budget session. Failure to roll out the GST regime w.e.f April 01, 2016 will also impact the Centres’ much talked about ‘Make in India’ programme.

Note:

It is important to mention here that the Lok Sabha will have to again pass the amended bill if the Rajya Sabha clears the amended Bill.

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(Source: Compilation from various news columns and official website of Rajya Sabha)

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