GST clears Rajya Sabha 203-0! Govt & Opposition show how it's done

Earlier in the day, Jaitley moved the Constitution (122nd Amendment) Bill, 2014, calling it a historic moment in India's tax reforms that has been brought after a "broad consensus" with various political parties was achieved. Interestingly, he didn't shy away from giving the Congress due credit for introducing the contentious Bill.

"It was first put into public domain in 2006, when it was referred to then Finance Minister P Chidambaram," said Jaitley, who also mentioned the significance of the Bill and how it will help provide a much needed boost to the economy. The finance minister also thanked all parties, "especially Ghulam Nabi Azad and chief ministers " for their support.

However, the Congress wasn't so kind to the ruling party and as reported by Catch earlier. It fielded the former finance minister P Chidambaram - one of the architects of this business friendly tax reform - to specify party's reservations with the Bill in clear terms.

Also read - GST debate to be a Jaitley vs Chidambaram face-off. Don't miss it!

Taking jibes at Jaitley, Chidambaram began by saying, "I welcome the friendly tone of the finance minister's speech. I think the tone and approach has changed over the last few weeks. There are outstanding issues that need to be resolved."

Chidambaram yet again took on the BJP and said, "We had earlier tried to pass the GST Bill with the support of the Opposition and we failed. The government tried to pass the GST Bill without our support and I am happy they failed," he said and requested Jaitley to pass the Bill not on strength but on "basis of logic".

Expressing "happiness" over the government's efforts of "serious engagement" with opposition, the former finance minister chided Jaitley and claimed the Bill to be an example of "clumsy drafting". Most of his speech focused on the GST rate for which he warned the government of political repercussions if the rate exceeded 18%.

Claiming to speak on behalf of the common man, he said, "There are many voices in the government which speak for the corporates, but someone must speak for the people. I am doing that." Laying conditions for the central government, he said till the finance minister gives an assurance to the members of house, the Bill would not be brought as Money Bill, the Congress would gladly support its passage.

Money Bill vs Financial Bill

Soon after members of all political parties put forth their reservations about the various provisions, especially the ones concerning the protection of the rights of the states, Jaitley rose up to put forth his views. The Opposition was unanimous over the fact that the federal structure be maintained and the GST should not take away the legitimate rights of the states.

The finance minister gave a detailed explanation addressing concerns of all those who raised these objections and assured them that the states have as much veto over the Centre as the Centre has over states in the GST Council - a body comprising of Finance Ministers of the Centre and all states.

"The union of states can't exist without union. Both Centre and states will retain their sovereignty. We are experimenting a new idea so that the central and state will have uniform tax structure. The states have to be stronger but the union has to be strong too," assured Jaitley.

His statements did take care of all the reservations and just when the Bill was to be considered for voting, Chidambaram rose from his seat and reminded the finance minister that he is yet to give an assurance on the contentious issue whether the Central GST and Inter-state GST Bills will be brought in as money bills or finance bills.

This led to Congress leaders cornering the government claiming that a similar strategy was adopted in the Aadhar Bill and the Private Members Bill and could possibly happen again. Leader of the Opposition in Rajya Sabha Ghulam Nabi Azad, Jairam Ramesh and Kapil Sibal objected to the finance minister not giving an assurance forcing Jaitley to answer.

Responding to it, the finance minister said that he can't comment on whether the CGST and IGST Bills will be brought in as money bills, but did assure the opposition that the government will ensure that it won't move ahead without the consideration of the opposition.

Once this was sorted, as expected, the AIADMK staged a walkout paving way for the government to move ahead with one of the far reaching reform since Independence.

More in Catch - Govt panel accepts most Congress demands. Will the GST bill pass now?

Here's everything you need to know about GST Bill