RS panel backs majority of GST Bill proposals

RS panel backs majority of GST Bill proposals

With the Rajya Sabha Select Committee endorsing almost all provisions in the GST Bill, the chances of the Constitution (122nd Amendment) Bill, meant to introduce the Goods and Services Tax (GST), clearing Parliament in the current session has brightened.

• The committee was headed by Bhupender Yadav of the BJp. The committee recently submitted its report to the Parliament.

Recommendations made by the committee:

• The GST rate should not go beyond 20% as standard rate and 14% as reduced rate.
• Full compensation from the Centre for any revenue loss to the States during the transition.
• The provision in the Bill that the Centre “may” compensate the States for up to five years for any revenue loss be replaced with acommitment of compensation for five years.

Status of the Bill:

• The Lok Sabha has already approved the Bill. It will now have to be taken up for passage in the Rajya Sabha.
• As it is a Constitution amendment Bill, it will have to be approved by two-thirds of the members in the Upper House, where the ruling BJP does not enjoy a majority. The government will have to depend upon the support of regional parties and allies.

Various demands by the opposition parties:

• Cap GST at 18% to avoid imposing unfair tax burden on consumers.
• Exclude petroleum from the ambit of GST.
• Reduce centre’s say in GST council.

Areas of conflicts:

• Some see this bill as pro-corporates. They say this bill aims at promoting the interests of corporates who want a free flow of goods and services.
• The GST Council, as a constitutional body, would impinge on the legislative sovereignty of both Parliament and the State legislature and would jeopardise the autonomy of the States in fiscal matters.

GST council:

• The GST Bill seeks to establish a GST Council tasked with optimising tax collection for goods and services by the State and Centre.
• Composition: The Council will consist of the Union Finance Minister (as Chairman), the Union Minister of State in charge of revenue or Finance, and the Minister in charge of Finance or Taxation or any other, nominated by each State government.
• The GST Council will be the body that decides which taxes levied by the Centre, States and local bodies will go into the GST; which goods and services will be subjected to GST; and the basis and the rates at which GST will be applied.

Sources: The Hindu, prsindia.

Privacy not a right, Aadhaar legit: Centre

The Centre has told the Supreme Court that Right to Privacy is not a fundamental right under the Constitution, adding it cannot be invoked to scrap the Aadhar scheme. it has further said that “Right to Privacy is not absolute and is subject to restrictions.”

Background:

The centre’s reply came in response to petitions which contended that the scheme of Aadhar based on collecting personal data violates the citizens right to privacy.

What petitioners say?

• Petitioners feel iris scans and fingerprinting arean invasion of privacy.
• Such personal information would help the State possess unbridled powers over its citizens and provide an easy opportunity to snoop on their private lives.
• Petioners also point out that nowhere in the Aadhaar scheme is the word ‘biometrics’ used; yet there are iris scans being done in the camps. Even the enrolment form does not use the word ‘bio-metrics’.

On a September 23, 2013 order, the court had directed that “no person should suffer for not getting the Aadhaar card.” In March this year, the Supreme Court had confirmed that the Aadhaar number was not compulsory, and further, officials who insisted on them would be taken to task