All parties must heed PM’s call to reach a consensus on GST

BJP and Congress must pull together on a reform they have both advocated

Another session of Parliament has begun with the BJP-led government expressing its determination to ensure the adoption of the Constitution amendment bill to usher in the longdelayed Goods and Services Tax. Prime Minister Narendra Modi has invested significant political capital in wresting a favourable outcome. Addressing an all-party meet on the eve of the session, Mr Modi appealed to members to give primacy to “the national interest” while urging bipartisan support for the GST bill. With many non-Congress Opposition parties expressing their willingness to see the legislation through, there is hope that the remaining sticking points will be sorted out.

The Centre has, by all indications, agreed to drop the proposed additional one per cent levy on inter-state sales over and above the GST rate, as sought by the Congress. The differences over the dispute-resolution mechanism have also narrowed. The remaining bone of contention involves the question of an explicit cap on the GST rate and whether it ought to be made a part of the amendment bill itself. For the BJP and the Congress, the next couple of weeks will be a real test of political sagacity in pulling together and delivering on a reform they have both advocated. No party may, for now, get the GST regime entirely of its liking — but it is better to initiate change on the basis of a reasonable consensus rather than wait for that elusive perfect agreement.