New Delhi: After the complete washout of the Monsoon session of Parliament, the Narendra Modi government is likely to take a call on convening a special session to pass the much-awaited Goods and Service Tax Bill.
The government has reached out to the Congress as Parliamentary Affairs Minister Venkaiah Naidu met senior Congress leader Mallikarjun Kharge at his residence. Naidu will then meet Home Minister Rajnath Singh.
Sources said the government will hold consultations with various political parties on the GST Bill and only after all parties express their intent to come on board for the passage of the Bill, a final call will be taken.
It was earlier reported that the government was planning to convene the special session from August 31 to September 4.
According to the Bill, Parliament and state legislatures will have concurrent powers to make laws on GST. The Bill also amends the Constitution to introduce the tax (GST). The GST Council will recommend rates of tax, period of levy of additional tax, principles of supply, special provisions to certain states etc. The GST Council will consist of the Union Finance Minister, Union Minister of State for Revenue, and state Finance Ministers.
The idea behind GST is to subsume all existing central and state indirect taxes under one value added tax, which will be levied on all goods and services. No good or service is exempt, and there is no differentiation between a good or service, whether as an input or as a finished product.
Under GST, tax paid on inputs is deducted from the tax payable on the output produced. This input credit set off operates through the manufacturing and distribution stage of production. The tax is collected only at the place of consumption. This design addresses cascading of taxes.
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