GST Debate: What FM Arun Jaitley, P Chidambaram said in Rajya Sabha

Finance Minister Arun Jaitley in his opening remarks about GST Bill which is currently underway said that the bill is one of the most significant tax reforms in the history of India.

The Ministry of Finance tweeted the minister as saying,"GST is one of the most significant tax reforms in the history of India." 

FM @arunjaitley in his opening remarks about GST bill at Rajya Sabha "GST is one of the most significant tax reforms in the history of India

— Ministry of Finance (@FinMinIndia) August 3, 2016

It further tweeted the minister as saying, "GST will give a boost to the economy which is now at a critical stage."

FM @arunjaitley " GST will give a boost to the economy which is now at a critical stage"

— Ministry of Finance (@FinMinIndia) August 3, 2016

Here are key points that FM Jaitley said in his speech on GST Bill: 

1. Petroleum technically within GST but zero rated right now; Petroleum will be brought in fully when GST council reaches decision.

2. GST Bill will empower the states, will increase revenue of states as well as centre. It will ensure that there is no tax on tax.

3 .GST will increase revenue of Central, State governments; GST will bring down evasion, will remove incidence of tax on tax.

4. IT backbone for GST being proposed, has reached advanced stages.

5. GST Council to decide on taxation structure later.

6. Agreed that disputes will be resolved within GST Council.

Here are key points that P Chidambaram said on GST Bill in Rajya Sabha:

1. GST Bill opposed, similarly 2014 bill was opposed and not the idea of having.

2. Happy that provision of 1% additional levy has been scrapped.

3. You cannot introduce a mechanism after a dispute arises.

4. A dispute resolution authority should be set up and not after a dispute arises.

5. Must oblige GST Council to set up dispute resolution mechanism.

6. As a matter of policy regressive, indirect taxes should be kept as low as possible.

7. GST is an indirect tax and it is by definition a regressive tax. It falls equally on the rich and the poor.

8. Worldover GST rate is between 14-16%.

9. Every FM wants to maximise revenues, but please remember we are dealing with indirect tax here.

10.Congress party demand of 18% GST rate based on report of Chief Economic Advisor.

11. When we sought a cap on the GST rate, we did it so that executive couldn't change it on its whim.

12. Seen many corporates in recent times asking for GST to be passed. They don't care about the cap. They will pass it on.

13. Cap on Rate of Tax should be fixed and executive should not be left to decide but Parliament, many in government speak for corporates.

14. The standard rate should not exceed 18% to make GST non-inflationary.

15. If government doesn't care about inflation, will of people, efficiency, go ahead and charge 24%. It defeats the purpose of GST.

16. The judiciary will reject it if the GST Bill does not mention a tax rate.You will come back to the Parliament again.

17. When we sought a cap on the GST rate, we did it so that executive couldn't change it on its whim.

18. Raising service tax rate to 24% would be 'Hugely Inflationary'.

Watch the video report of Zee Business channel's exclusive talk with Maruti Suzuki chairman RC Bhargava on the impact of GST Bill here-

Watch the video report of exclusive talk with Liberty Shoes chief executive officer Adesh Gupta on the GST Bill here-