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GST passed in Lok Sabha highlights: India to see new tax regime soon as House clears all four bills

Arun Jaitley responds to Opposition in the marathon debate on Goods and Services Tax bill that started in Lok Sabha on Tuesday at 12 noon

FP Staff March 29, 2017 21:00:09 IST
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GST passed in Lok Sabha highlights: India to see new tax regime soon as House clears all four bills

Highlights

13:52 (ist)

Budget at a glance: Highlights

    * Tax rates halved to 5% for income of Rs 2.5-5 lakh, tax slabs unchanged
    * 10% surcharge on people earning between Rs 50 lakh-1 cr
    * 15% surcharge on annual income above Rs 1 cr to continue
    * Cash transactions above Rs 3 lakh to banned
    * Corporate tax for SMEs with turnover up to Rs 50 cr cut to 25%; 96% companies to benefit
    * Customs duty of LNG halved to 2.5%
    * Fiscal deficit pegged at 3.2% next year, 3% in FY'19
    * Political parties barred from accepting cash donation beyond Rs 2,000 per individual
    * They can receive donations via cheques, electronic mode; electoral bonds to be issued by RBI
    * Aadhaar-based health cards for senior citizens; a scheme for them to ensure 8 pc guaranteed returns
    * FIPB to be abolished; further FDI policy liberalisation
    * Government to have time-bound procedure for CPSE listing
    * Railway PSUs -- IRCTC, IRFC, IRCON to be listed
    * Payment Regulatory Board to be set up within RBI to regulate digital payments
    * Negotiable instruments Act to be amended to deal with cheque bounce cases
    * Legislative changes to confiscate of assets of economic offenders who flee country
    * Demonetisation bold, decisive measure; to help GDP growth, taxes mop up to rise
    * Effect of demonetisation not to spill over to next year
    * GST, demonetisation 'tectonic changes' for economy
    * Service charges on e-tickets booked via IRCTC waived
    * Capital expenditure of Railway fixed at Rs 1.31 lakh cr
    * Rail safety fund of Rs 1 lakh cr over 5 years, unmanned level crossing to be eliminated by 2020
    * Budget based on 3 agenda -- Transform, Energise, Clean India (TECIndia). MORE PTI JD
    * 3 yr period for long-term capital gains tax on immovable property reduced to 2 years; base year indexation shifted from April 1, 1981 to April 1, 2001
    * Disinvestment target at Rs 72,500 cr, up from 56,500 cr 
    * Gross market borrowing pegged at Rs 6.05 lakh cr
    * Duty exempted on POS machines and Iris readers for encouraging digital payments
    * Tax benefits for Start ups to be for 3 out of 7 yrs
    * FPI to be exempt from indirect transfer provision
    * Integrated public sector oil major to be created to match global giants
    * Direct Tax collection growth 15.8%, indirect tax 8.3%
    * Total expenditure pegged at Rs 21.47 lakh crore
    * Capital expenditure up 24%; to have multiplier effect
    * Allocation to states hiked to Rs 4.11 cr
    * FRBM Committee suggests Debt-GDP ratio of 60% by 2020
    * Retail inflation to remain within 2-6 pc
    * 2 new AIIMS to come up in Jharkhand, Gujarat
    * Highest ever allocation of Rs 48,000 cr to MNREGA
    * Farm sector to grow at 4.1% this fiscal, to double farm income in five years
    * Farm credit target for next fiscal at Rs 10 lakh crore
    * Fasal Bima yojana increased to 40% of crop area; raised to Rs 1.41 lakh crore in Kharif 2017 season
    * Infrastructure investment pegged at Rs 3.96 lakh cr
    * To double irrigation fund corpus to Rs 40,000 cr
    * Infrastructure status accorded affordable housing
    * Dairy processing fund with Rs 2000cr corpus to be set up
    * Rs 1.84 lakh cr allocated for women, child initiatives
    * Rs 1.87 lakh cr allocated to rural, agri, allied sectors
    * 1 crore houses by 2019 for homeless
    * PM Awas Yojana allocation up from Rs 15,000 cr to Rs 23,000 cr
    * 100% village electrification to be achieved by May 2018
    * Rs 31,920 cr allocated for Scheduled Tribes, Rs 4,195 cr for nminority affairs, outcome based budgeting to start
    * Road sector allocation hiked to Rs 64,000 cr
    * Innovation Fund to be created for Secondary Education
    * Allocation of Rs 2.41 lakh crore rail, road, shipping to create jobs, spur economic activity
    * New metro rail policy to be announced
    * New crude oil reserves proposed at Odisha and Rajasthan; to take strategic reserve capacity to 15.33 mmt 
    * India on cusp of digital revolution
    * FDI increased 35 pc to Rs 1.45 lakh crore in H1 FY'17.

11:53 (ist)

Rural schemes continue. But are job losses factored in?

Jaitely’s speech reaffirms the government’s aggressive focus on the rural push, a key item in the government’s agenda. Jaitley said this government wants to take one crore households out of poverty by 2019 and complete rural electrification by 1 May, 2018. The FM has almost started from where PM Modi stopped in his New year speech as far as government’s big rural push is concerned. More sops were doled out for the farmers. As usual, the bank credit target for agriculture was further increased to Rs 10 lakh credit target this year. Whether the banking system have the capacity to take up the additional burden given the existing high level of bad loans from the segment is a question.

The additional sops for the farmers include increase in Fasal bima yojana coverage to 40 percent and crop insurance coverage by 50 percent, a Rs 5,000 crore micro irrigation fund and Rs 8,000 crore dairy processing fund. Further, the government will support NABARD to digitise 63,000 primary agri societies, the FM said. Rs 48,000 crore has been allocated to MNREGA from Rs 37,000 crore last year, Jaitley said. But, isn’t also due more number of people moving from factory jobs to informal sector? The government has increased the allocation for rural agriculture and allied sectors by 24 per cent to Rs 1,87,223 crore, which should ideally help revival in rural sector post demonetisation impact. But are job losses factored in?

11:38 (ist)

Hits and misses from President’s budget session address last year 

The President's address, a day before the Union Budget is presented, sets the tone for the upcoming Budget Session as the broad initiatives taken by the Union government and objectives for the coming year are listed out.

According to a report prepared by the New Delhi-based think tank PRS Legislative Research, which analysed President Mukherjee's address to Parliament on 23 February 2016, not all targets of increasing GDP and lowering inflation, fiscal deficit and current account deficit were achieved.

The GDP is estimated to grow at 7.1% in 2016-17 as compared with 7.6% in 2015-16. However, the Consumer Price Index (CPI) in December 2016 was 3.4% down from 5.6% in December 2015.  Read the report here.

LIVE NEWS and UPDATES

Apr 12, 2017 - 13:08 (IST)

Rajya Sabha adjourns sine die

Apr 12, 2017 - 12:59 (IST)

Opposition and ruling united over bounty row on Mamata Banerjee's head

The Lok Sabha on Wednesday condemned a BJP youth wing leader's offer for a bounty of Rs 11 lakh to anyone who beheads West Bengal Chief Minister Mamata Banerjee.

Raising the issue soon after the House assembled to take up the day's business, TMC member Saugata Roy said a BJP youth wing leader had made the "announcement" of giving the reward for beheading Banerjee, after police resorted to lathicharge in Birbhum district to disperse a rally during Hanuman Jayanti. "Mamata Banerjee is not only an elected chief minister but a former member of this House too. It is a serious and alarming behaviour and the House must condemn it. She is a grassroot leader and government must take action on it," he said.

Apr 12, 2017 - 12:52 (IST)

Apr 12, 2017 - 12:50 (IST)

First leg of Budget Session productive: LS functioned for 113%, Rajya Sabha for 97%

The first part of the Budget Session was very productive as Lok Sabha functioned 113 percent while Rajya Sabha 97 percent. The productivity in the second half of the budget session till now for Lok Sabha and Rajya Sabha has been 112 percent and 87 percent. 

The Companies (Amendment) Bill, 2016 and The Repealing and Amending Bill, 2017 is scheduled for consideration and passage in Lok Sabha today.

Apr 12, 2017 - 12:44 (IST)

MPs create ruckus in Parliament

The matter echoed on in the Parliament on Wednesday as TMC leaders raised the issue in Rajya Sabha, which garnered support from other parties as well. Samajwadi Party Rajya Sabha MP Jaya Bacchan expressed anguish on the BJP leader's remark, stating that the BJP was keen on protecting cows but not women.

TMC's Saugata Roy also strongly condemned the BJP leader's statement urging strong action against people who make such provocations. Meanwhile, BJP has distanced itslef from Varshney's comments, stating that the West Bengal state government is free to take action against him.

Apr 12, 2017 - 11:54 (IST)

Last day of Budget Session - here's a quick recap of the session

Today is the last day of the Budget Session of Parliament. The first half of the session was held from 31 January to 9 February and after a month-long recess the second half of the session began on 9 March. During the session till now, the Lok Sabha has passed 21 bills and the Rajya Sabha 14 bills. They include the Enemy Property (Amendment and Validation) Bill, The Mental Health Care Bill, The Maternity Benefits (Amendment) Bill, The Payment of Wages (Amendment) Bill, 2017 and the crucial four supporting bills for the roll out of the Goods and Services Tax. 


Scrapping a colonial-era tradition of presenting the Budget at the end of February, for the first time in the history of Independent India, the Government presented the annual accounts on 1 February. Prime Minister Narendra Modi on Tuesday described the Budget Session as a winner for the treasury benches. He said, the government was able to secure passage of many key bills in the Parliament.

Apr 12, 2017 - 11:49 (IST)

BJP leaders distance themselves from Yogesh Varshney's comment

BJP leader Mukhtar Abbas Naqvi disowned Varshney's comment, saying: "I condemn this type of statement. The state government can take proper action." BJYM leader Varshney issued the outrageous threat while hitting out at Mamata over police action on a rally held on Sunday to mark Hanuman Jayanti in Birbhum district.

Alleging that people were beaten up brutally by the police, Varshney described Mamata as a "demon" and said, "When I saw the video, I only had one thought... that if anyone gets me Mamata Banerjee's head I will give them 11 lakh."

Apr 12, 2017 - 11:39 (IST)

Last leg of budget session favourable for BJP govt

The second half of the budget session of Parliament, which ends on Wednesday, has been favourable to the ruling NDA, which not only managed to push its economic reforms agenda but also put up a united front. Prime Minister Narendra Modi on Tuesday told the parliamentary party of the BJP that the session was a victory for the Union government.

Apr 12, 2017 - 11:34 (IST)

Actor and MP Jaya Bachchan, along with BJP leader from Bengal Rupa Ganguly, reacting sharply to the comments against Mamata

Apr 12, 2017 - 11:30 (IST)

Bounty announced for Mamata; Rajya Sabha slams BJYM leader Yogesh Varshney

After a day of ruckus in Parliament over the "illegal" death penalty given to former Indian Navy officer Kulbhushan Jadhav, MPs in Rajya Sabha were up in arms after a Bharatiya Janata Yuva Morcha (BJYM) leader announced a reward of Rs 11 lakh to whoever who beheads West Bengal Chief Minister Mamata Banerjee and gets her head.

The remark, which came shortly after a lathicharge which happened at Birbhum district to disperse a rally raising slogans of "Jai Sri Ram" on Hanuman Jayanti, recieved a lot of flak and criticism.

BJYM leader Yogesh Varshney told ANI, "Those who will cut and bring West Bengal Chief Minister Mamata Banerjee head, I will give that person Rs.11 lakh. Mamata Banerjee never allows Saraswati Puja, fairs during Ram Navami and during Hanuman Jayanti procession, people were lathi charged and brutally beaten up. She organizes Iftar party and always supports Muslims."

Members are about to start their seven-hour discussion on the Goods and Services Tax - the biggest tax reform in the country - in the Lok Sabha without a lunch break at about 12 noon.

The MPs are preparing for the big showdown in the Lower House, with the Opposition parties already alleging that the supplementary bills were introduced in the Lok Sabha on Monday in haste and they did not get enough time to deliberate.

GST passed in Lok Sabha highlights India to see new tax regime soon as House clears all four bills

PTI

Meanwhile, finance minister Arun Jaitley has briefed the MPs about the need for urgency in passing the Bills in the current session and the benefits for the common man will get from the tax reform.

Though there is likely to be stormy discussion on various sections of the Bills, media reports say Congress vice-president Rahul Gandhi has told his party MPs that they have to play the role of a constructive opposition. He has insisted that the party should end up with the image of one opposing the reform process.

The government had on Monday tabled four bills - the Compensation Law, the Central-GST or C-GST, Integrated-GST or I-GST and Union Territory-GST or UT-GST - aimed at rolling out the much-awaited reform in the Lok Sabha.

The reform will subsume a host of taxes such as central and state taxes like excise duty, service tax and VAT, and local taxes to make a single market, helping seamless movement of goods and rendering of services across the country. It is estimated that rolling out of the GST can add up to 2 percent to India's economic growth.

Updated Date:

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