Now with marginal improvement in BJP’s numbers in Rajya Sabha at least this Monsoon session should see the passing of GST Bill by the Upper House. Progress on GST Bill unfortunately has been held hostage to the prevailing political differences. Barring AIADMK no other political party has opposed the idea. Even Congress appears to have dropped its opposition to some details of the Bill. After the recent parliamentary elections equation seems to have changed yet it is still not in a position to bypass the opposition. During the budget session, Congress had 64 members to BJP’s 49 in the Rajya Sabha. Since then 57 seats fell vacant in 15 states. Of these 30 were elected unopposed and the remaining 27 spread across seven states saw high-intensity drama with some unexpected results. The GST once introduced would be able to address this prevailing divide and bring in uniformity which ultimately would be a big relief for the consumer. It is the consumer who is the worst affected due to such a faulty taxation system on goods and services. It is arguably the most important legislation on economic reforms that country can experience. It is over five years since the first deadline to roll out GST has passed. In due course of time the issue has become a political football to score some points. The constitutional amendment is the first leg of three part legislation needed to roll out GST. As the Bill requires a change in the Constitution, states will have to pass the Bill in their own Assemblies approving the change in tax law. At least the House should see the passage of one of the most important legislation on economic reforms. No doubt uniformity in taxation would push production which indirectly would boost employment. One of the unsaid points in political circles is that the Congress fears that the GST Bill will tremendously help GDP growth sinking its chances in 2019. On the other hand, the BJP fears that passing the GST Bill has tremendous risks particularly in the first two years (increased costs to both businesses and consumers) which might erode its current advantages.
