PM rues RS not passing GST, says states would have benefitted

As Parliament session concluded on Friday, Prime Minister Narendra Modi repented that the Rajya Sabha did not pass the landmark Goods and Services Tax (GST) Bill yet again. 

Modi, who spoke in the Upper House, noted that the Rajya Sabha members are representatives of the states and the interest of their state should be a priority for them. While important reform measures were passed, “it would have been better if two critical decisions had also been approved,” he said, referring to the GST Bill and the Compensatory Afforestation Fund Management and Planning Authority (CAMPA). “Bihar would benefit from GST, UP would benefit from it. Barring one or two, all states would have benefited from GST,” he said. 

Goods and Services Tax, which is to subsume all indirect taxes like excise duty and service tax into a single GST rate, was to be implemented from April 1, 2016, but opposition from the Congress over key clauses, including cap on the tax rate, had stalled its passage in the Upper House. 

The Lok Sabha has already approved the constitutional amendment, but it remains pending in Rajya Sabha, where the ruling NDA lacks the numbers.

Modi said the second crucial legislation was the one to create CAMPA. “States would have got Rs 42,000 crore, if we had decided on the legislation,” he said, adding that each state would have got Rs 2,000-3,000 crore. 

The Bill seeks to establish the national compensatory afforestation fund to promote afforestation and regeneration activities as way of compensating forest land diverted to non-forest uses. 

“This (Rs 2000-3000 crore) is not a small amount,” he said, adding that availability of the funds before the beginning of the Monsoon season would have greatly benefited the states. “We will have to wait for 4-5 months now,” he said, ruing that the move beneficial to states was left out.

The PM said what the Rajya Sabha can do for the states, no other House can do. The Upper House, he said, has a special privilege as it can bid goodbye to retiring members and also welcome new ones. The Lok Sabha does not have this benefit. Expressing gratitude towards the retiring MPs, he said the 53 members in their six-year tenure had seen two governments. “Both the governments benefited with their knowledge and experience. This government benefited less, the previous one benefited more,” he said. 

The nation has benefited from their Parliamentary contributions, he said. Congress leader Anand Sharma noted that while the House had cleared important legislations such as the Bangladesh Land Boundary Agreement and Insurance Bill – pending for seven years, and the Insolvency Bill, it was true that there was delay in some. He blamed ideological differences for it, saying that they had led to stalling of the GST bill for years when the UPA was in power.

The UPA had piloted the GST Bill but BJP-ruled states like Gujarat had opposed the draft. A wrong image was created outside that no work is transacted in Rajya Sabha, he said, adding obstructions are part of democracy and are used to put across reservations on policies and programmes. He, however, regretted the “bitterness” in political discourse.

The Rajya Sabha on Friday bid farewell to 53 of its members from 14 states, who are retiring between June and July this year. In his farewell address, Chairman Hamid Ansari said parting is painful, more when it involves a colleague and a friend – a member of the fraternity. He said every retiring member has contributed significantly to the functioning of the House. He said in this process they have strengthened Parliamentary democracy. The Chairman said they were leaving behind an indelible legacy that would continue to enrich parliamentary proceedings in future. Deputy Chairman PJ Kurien observed that no politician retires. He wished the retiring members well in their retired life.