Monsoon Session 2016: Modi seeks oppositions’ nod on GST Bill

Deepak Kumar

As the monsoon session of parliament began on Monday, Prime Minister Narendra Modi shall seek consensus of the opposition parties to ensure that the passage of key reforms bills, most importantly the Goods and Service Tax (GST) Bill, which is aimed at bringing uniformity in the tax laws and making the domestic market a one common marketplace. 

Modi, while speaking to media ahead of the Monsoon Session of 2016, said all the parties and the leaders over the past few days have shared the sentiments that we are committed to take the best decisions for the benefit of the country and to carry the nation forward on a fast track.

“GST is of national importance. Issue is not which government gets credit. Important bills, including GST, will be taken up in the monsoon session and I hope there will be meaningful discussions and outcomes,” the Prime Minister said in the all-party meet on Sunday.

Modi highlighted the single-most hindrance to the clearance of the GST Bill and said the GST bill is the country’s largest national interest, and while the ongoing political deadlock over the bill continues to hurt the industry, this should not be seen an issue for which the government gets credit for, he said.

The Modi-led government is optimistic of winning the opposition parties’ vote during the ongoing Monsoon Session of the Parliament, especially since many of the regional political stalwarts including Mulayam Singh Yadav of the Samajwadi Party and Mamata Banerjee of Trinamool Congress have come ahead to support the bill.

Last week, the Finance Minister Arun Jaitley had met the Leader of Opposition in the Rajya Sabha Ghulam Nabi Azad, to discuss the clearance of the goods and services tax Constitution amendment (GST) Bill.

The industry feels that the GST, once implemented, will add more than 1% to the country’s GDP growth rate. Considering the monsoon, which stood at 4% above-normal during July 1- July 13, and expected to be 8% above-normal overall according to the India Metrological Department (IMD), is expected to help the agricultural production grow by 9.3% for the year 2016-17. The extra growth in India’s agricultural output, which contributes about 15% to the country’s GDP, is expected to add another 1% to the country’s GDP growth rate.

Therefore, with more than the average rainfall resulting in an increased agricultural production, thereby adding 1% to the GDP growth rate and the GST bill, projected to add another 1% to the country’s economic growth rate, it takes the overall GDP growth rate from its current 7.6% to over 9%. This gives more chances for the government to push for a smooth passage of the GST Bill during the Monsoon session.