Thursday January 17, 2019
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RS panel okays GST bill, suggests five-year central compensation

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New Delhi The Select Committee of the Rajya Sabha on the Goods and Services Tax Bill has advised changes in provisions relating to compensation for states and on levy of one percent additional tax by states on the inter-state supply of goods.

The suggestions were made on Wednesday as the committee submitted its report to the Rajya Sabha, the upper parliamenthouse of parliament. The report, which by majority endorsed almost all the GST bill provisions is, however, marked by dissent notes from the Congress, AIADMK and Left parties.

According to the committee, the provision in the bill provides that the central government “may” compensate states for a period up to five years for any revenue loss. The report has suggested this be substituted with a commitment to compensate for five years.

In case of the provision for levying 1 percent additional tax by states to cover their losses due to abolition of local levies, owing to implementation of GST, the committee has suggested the levy should only apply to “all forms of supply made for a consideration”.

According to the bill, when goods move from one state to another, an additional one percent tax would be levied, but the opposition said it would lead to a cascading effect.

The committee, headed by BJP leader Bhupendra Yadav, however, retained the representation of the Centre and states in the GST Council at the proposed level at one-third and two-thirds, despite demands to reduce the centre’s representation to one-fourth.

“Administratively, we are taking all steps for both the Centre and states to meet the April 2016 deadline,” Revenue Secretary Shaktikanta Das told reporters here.

The union government has set the target to reform India’s indirect tax regime from April next year, and had earlier proposed 100 percent compensation to states for first three years.

The GST is seen as the key to facilitate industrial growth and improve the country’s business climate.

By subsuming most indirect taxes levied by the central and state governments, such as excise duty, service tax, VAT and sales tax, the new regime proposes to facilitate a common market across the country, leading to economies of scale and reducing inflation through an efficient supply chain.

The passage of the bill to become a law is a lengthy process.

Being a constitution amendment bill, passed by the Lok Sabha, it needs to be passed by the Rajya Sabha with a two-thirds majority and then be ratified by at least 15 state legislatures before being sent to the President for his assent.

IANS

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Benefits Meant for the People Should Reach Them On Time: Prime Minister Narendra Modi

In a month, development projects worth more than Rs 20,000 crore have been either inaugurated or initiated in Odisha, said Modi

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"We ensured everyone gets what they deserve" PM Modi

Pime Minister Narendra Modi on Tuesday attacked previous governments at the Centre for ruling the country like their “Sultanates”, neglecting its rich heritage.

“Past governments ruled like Sultans and neglected our rich heritage. They ignored our glorious civilisation and failed to pay attention to their preservation,” said Modi while addressing a public meeting in Balangir town in Odisha.

“This criminal error will always stick to the parties, who the country gave the opportunity to run governments for decades. Surprisingly, they have not taken lessons from this,” he added.

He also attacked the state government under Naveen Patnaik and said the benefits meant for the people should reach them on time and must not be used as an election tool.

PM Modi
Benefits Meant for the People Should Reach Them On Time: Prime Minister Narendra Modi

 

This was Modi’s third visit to the state in the past three weeks and showed the importance that the Bharatiya Janata Party (BJP) was attaching to the state ahead of the general and assembly elections.

The Prime Minister said his government was committed to conserving and preserving the country’s rich cultural heritage.

He said his government has been constantly making efforts to bring back the idols stolen from the temples in India.

He also attacked the parties for opposing the International Yoga Day and the construction of the Statue of Unity.

“Some parties were against organising the International Yoga Day. These are the people who did not promote yoga. These people neither understand India nor tourism,” he added.

“They raised questions on erecting the statue of Sardar Vallabhbhai Patel. But, after becoming the world’s tallest statue, it has generated jobs for people residing around the structure.

Narendra Modi, India, election
Elaborate preparations for PM’s election rally. VOA

“They were also against changing the names of islands in Andaman and Nicobar islands,” said Modi.

He said the central government has cancelled around six crore fake ration cards, gas connections, scholarships with wrong names, grabbing pension under wrong names over the last four years.

“We plugged these leakages, saving crores of rupees. All ration cards have been digitised and around 80 per cent of them have been linked with Aadhaar,” said the Prime Minister.

“The middlemen used to loot the money meant for poor. We have stopped this. We ensured everyone gets what they deserve,” he added.

The Prime Minister said there are people, who are angry because he has put a stop to their loot and corruption.

india
PM believes in Constant Development and Promoting tourism.

Highlighting the developmental works being carried out by the Centre in the state, he attacked the Odisha government for failing to utilise the District Mineral Foundation (DMF) fund in the mineral bearing areas.

“Odisha has Rs 4,000 crore in its DMF Fund which has remained unutilised so far. What has happened to the government? It is in deep slumber. The government of Odisha should ensure that the benefits reach the tribal people.

“Do not wait for the elections. Ease the problems of people, elections will keep coming,” said Modi.

Also Read- Prime Minister Narendra Modi Claims BJP Was Not in Politics For “Divide and Rule”

He said the central government has allocated over Rs 20,000 crore for the development of Railways in Odisha in the last four years alone, which is five times more than the allocation by the previous government.

In a month, development projects worth more than Rs 20,000 crore have been either inaugurated or initiated in Odisha, said Modi. (IANS)