Tuesday March 19, 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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BJP President Amit Shah States The Importance of Having Citizenship Bill

Asking opposition parties not to create obstacles in the construction of Ram temple, he told them to clear their stand on the issue

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BJP President Amit Shah on Sunday said that the controversial Citizenship (Amendment) Bill was “very necessary” and added that the government was working on building a consensus with stakeholders in the northeast.

Addressing the media here, Amit Shah also said that the government had brought the bill after much thought and Home Minister Rajnath Singh was holding consultations with various people to address the opposition to the issue.

“There are two sides of a coin. There are decisions that some like and some don’t… The fate of huge number of refugees can’t be kept hanging in the balance and we are firm on it,” he said.

Asked what would be the BJP’s stand if suggestions come to withdraw the Bill as it has created unrest in the entire northeast, Amit Shah said: “Home Minister is holding discussions with political parties. Discussion with some parties have already taken place. If consensus emerges, we will definitely move ahead but the Citizenship Bill is highly necessary for the country.”

The Bill seeks to grant Indian citizenship to Hindus, Sikhs, Buddhists, Jains, Parsis and Christians from Afghanistan, Bangladesh and Pakistan who entered India before December 31, 2014.

Amit Shah
BJP President Amit Shah.

Political parties and civic groups in the northeast say if this is implemented, “outsiders” will overwhelm the local population.

The BJP President was also committed to build a grand Ram temple in Ayodhya.

Also Read- Students From Abroad Must Come to India For Higher Studies, Says PM Narendra Modi

“The BJP wants the Ram Temple should be built at the same place in Ayodhya where Lord Ram was born. Our stand is clear. There is no confusion.”

Asking opposition parties not to create obstacles in the construction of Ram temple, he told them to clear their stand on the issue. (IANS)