Arun Jaitley expresses hope of introducing GST Bill in ongoing Winter Session of Parliament

Finance Minister Arun Jaitley on Monday expressed hope that the much-awaited GST (Goods and Services Tax) Bill, which provides for a uniform indirect tax structure, would be introduced in the ongoing Winter Session of Parliament.

"We will try and introduce GST Bill in this session. GST Bill would be taken up by the Cabinet after (the) Empowered Committee (of state finance Minister) meeting on December 12," Jaitley said in the national capital on Monday.

The government has proposed to implement GST from April 1, 2016, and the new Finance Commission may be set up ahead of its schedule to look into the issues related to the new indirect tax regime.

The GST Constitutional Amendment Bill, which was introduced in the Lok Sabha in 2011, had lapsed and the Prime Minister Narendra Modi-led government will be required to come up with a fresh Bill.

The GST will incorporate indirect taxes like excise duty and service tax on the central front and VAT on the States level, besides local levies. There are differences between the Centre and States on some issues with regard to the implementation of GST that includes the revenue neutral rate and keeping petroleum, liquor out of the ambit.

While a sub-committee on the new tax regime has suggested that the revenue neutral rate of GST be pegged at about 27 per cent, the States are yet to decide on it. The committee had suggested States GST at 13.91 per cent and Central GST at 12.77 per cent.

Besides, States have been demanding that petroleum, alcohol and tobacco should be kept out of the purview of GST.

The GST rollout has missed several deadlines due to lack of consensus among States over certain crucial issues on the new tax regime.

Talking about the M&As, Jaitley said that mergers and acquisitions need to be encouraged to promote larger domestic companies but the country's fair trade watchdog Competition Commission of India (CCI) also needs to understand the limits while implementing competition law, Finance and Corporate Affairs Minister Arun Jaitley said on Monday.

"When our own corporates are of moderate size, mergers, acquisitions and consolidation need to be encouraged to promote size. So when it is that we draw the red line?" Jaitley asked at the inaugural of the International Competition Network merger workshop organised here by the CCI.

The CCI is becoming "extremely mature" in this regard, Jaitley said, adding there was a need to apply the "principle of proportionality" while implementing competition law.

"What are the kind of consequences and penalties that we impose in the larger implementation of the law?"

Jaitley said the question of jurisdiction was emerging in common turf issues on account of multiple regulators.

"If two telecom majors are to amalgamate, will there be common turf areas between the telecom regulator and market regulator CCI?

Therefore, how do you build the jurisdiction of the two? Obviously jurisdiction in this area is emerging," he said.

(With inputs from IANS)