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This is an archive article published on July 20, 2016

For GST consensus, Jaitley speaks to Congress, gets Nitish backing

“We believe in GST and have favoured it since the beginning; it is for the welfare of the state and the country,” Nitish Kumar said

parliament, parliament monsoon session, monsoon session 2016, gst, gst bill, goods and services tax, arun jaitley, nitish kumar, congress, bjp, india news, parliament news Finance Minister Arun Jaitley and other BJP leaders after the parliamentary party meeting in New Delhi on Tuesday. Prem Nath Pandey

WITH the Congress now settling for “nuanced changes” in the Goods and Services Tax (GST) Bill, the government is working overtime to build an all-party consensus on the path-breaking indirect tax reform.

After almost an hour-long meeting last Friday with Congress leaders on the GST, Union Finance Minister Arun Jaitley had a brief talk Tuesday with Congress’s Deputy Leader in Rajya Sabha Anand Sharma. Sources said the Congress, which has been insisting on specifying the GST rate in the Constitution itself, has now sought certain “nuanced changes” in the GST Bill.

Sources in the Congress said there was no structured meeting between Sharma and Jaitley, and the two only spoke briefly but on other issues.

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The Congress, sources said, had demanded significant changes to the Constitutional Amendment Bill, but was willing to discuss the government’s alternative options to mentioning the GST rate in the Constitution. A couple of options, according to experts working with the government on GST, are to mention the rate in the GST Bill that the Centre and states have to separately legislate or make it incumbent upon the GST Council to strongly recommend the least rate.

Meanwhile, Jaitley met Bihar Chief Minister Nitish Kumar who has voiced his support for the GST. “We believe in GST and have favoured it since the beginning; it is for the welfare of the state and the country,” Nitish Kumar said after the meeting.

The Finance Minister also plans to travel to Andhra Pradesh and Telangana to meet the TRS and TDP leadership. The government is counting on galvanising support from other parties and states. “The Centre has to talk to all states and parties,” a senior Congress leader said.

According to the Congress leader, formal discussions with the government will continue this week. “A draft is likely to be discussed over the next couple of days,” the leader said.

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