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Instead, it has gone back
to the law ministry seeking help, on whether GST will hurt the Constitution's
basic structure. This is because taking the Supreme Court's opinion might delay
GST implementation by another two years.
The finance ministry is reviewing its decision to approach the Supreme Court, to
seek its legal advice on GST.
NDTV learns from finance ministry sources that the route to Supreme Court will
delay the implementation of GST by almost two years. Sources that NDTV spoke to
say, ''In all probability, the Supreme Court will play by the rule book in
considering whether GST violates or changes the basic structure of the
Constitution. This would entail, inviting comments from all the state
governments, trade bodies and other stakeholders in GST by the Supreme Court,
including, setting up of a separate Bench to consider the matter.''
Finance minister Pranab Mukherjee, is keen to implement the Goods and Service
Tax by April 1, 2011.
The ministry was planning a Presidential Reference on GST, to avoid litigations
in future. It wanted to be sure that the basic structure of the Constitution is
not be threatened by introducing GST. This suggestion had emanated from the law
ministry, as they themselves were divided on this sensitive issue.
With limited legal options, the finance ministry has gone back to seek law
ministry's advice and is awaiting their decision.
In the meanwhile, NDTV learns, even the draft GST Amendment Bill, will be
delayed. The finance ministry has planned to introduce the Bill in the next
Monsoon Session.
The Empowered Committee of State Finance Ministers, which is the key body of
state government representatives on GST, is scheduled to meet in New Delhi on
May 21, where, long unresolved issues like a common tax base for GST, items of
exemption from GST, GST rates, GST compensation package etc, are likely to be
discussed.
Source:
NDTV.com, India, dated
11/05/2010
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