GST: Know 3 main reasons behind the logjam

Zee Media Bureau

New Delhi: Monsoon Session of Parliament has begun today. Prime Minister Narendra Modi made a strong pitch for multi-party support on Goods and Services Tax (GST) Bill earlier in the day. The GST Bill has already been passed in Lok Sabha, where the ruling BJP-led NDA government maintains dominance, and seeks approval of Rajya Sabha, where it lacks majority.

 

However, its passage in the Upper House appears tricky considering the last two Rajya Sabha sessions where the main opposition party – Congress - put forth strong reservations on these issues:

1) The first demand of Congress is to specify 18 percent cap on GST rate in the Constitution.                       

2) Secondly, the Congress is opposing the one percent additional levy on manufacturing states - Gujarat, Maharashtra, Tamil Nadu and Punjab.

3)Thirdly, Congress also wants disputes to be settled by the judiciary, while the Centre wants it to be settled by the GST Council.

 

BJP needs the support of 154 members in the 245-member strong Rajya Sabha to get the bill passed.