India&#39;s finance minister Arun Jaitley&#39;s meeting with the empowered committee of state finance ministers on good and services tax (GST) on Tuesday ironed out matters relating to dual control, compensation guarantee for revenue loss to states and other key issues. 
 
The development is likely to help government pass the crucial Constitution (122nd) Amendment Bill for GST in the upper house of the Indian Parliament, the Rajya Sabha, in the ongoing monsoon session and steam roll opposition party Congress&#39; objections. 
 
West Bengal state finance minister Amit Mitra, who heads the empowered panel, said there was consensus among states that businesses with turnover of up to 1.5 crore Indian Rupees should come under their jurisdiction while those with turnover of over Rs1.5 crore would be under the dual control of the state concerned and the Centre. 
 
&quot;There was a standing issue on the question of dual control... Further, the states were also satisfied with wording (in the Constitution Amendment Bill) by which states will be guaranteed five years of compensation if there is any loss of revenue,&quot; he told the reporters after the meeting. 
 
Manufacturing states like Gujarat, Maharashtra, Tamil Nadu and others have expressed concern over loss of revenue due to GST, which is a destination tax. 
 
The Constitution Amendment Bill for GST, which will subsume all indirect taxes to create one single levy for the entire market, is stuck in the Rajya Sabha due to differences between the ruling National Democratic Alliance (NDA) and main opposition Congress over it. 
 
While the lower house (Lok Sabha), where the NDA has majority, has passed the Bill, the government failed to push it in the upper house for want of support. 
 
One of the major point of dispute is the GST rate. Congress has demanded that the rate be capped at 18 per cent and included in the Constitution. Mitra said the GST rate could be decided when the law is enacted. He said the &quot;wording&quot; for it had been &quot;worked out&quot;. 
 
&quot;The question of (GST) rate was very important. A wording has been worked out which essentially means that the incident of tax on the common man has to be significantly reduced (currently it is over 30 per cent), at the same time there should be a safeguard for existing level of revenues of the Union and states.These are the two objectives. A broad framework of words has been worked out and we hope that all political parties would be in agreement,&quot; he said. 
 
Mitra said the issue of disbursement of funds to the states from central consolidated pool was also discussed. 
 
&ldquo;When the money goes into the Central government&rsquo;s consolidated pool, it becomes difficult for that money to come out to the state. On that, there is a broad consensus and hopefully that has been resolved, which will be reflected in the Constitutional Amendment,&rdquo; he said. 
 
Mitra, however, did not say anything on the 1 per cent additional tax that is one of major bone of contention with the Congress. 
 
It has asked for the extra levy, which will imposed on goods that are moved between states, to be completely scrapped as it will have a cascading impact and push up prices of goods. The industry has also opposed it. 
 
Rajeev Dimri, leader, indirect tax, BMR &amp; Associates, said resolution of dual control issue was a small step in fine-tuning the GST Bill but it does not have to be included in the Constitution. 
 
&ldquo;It can easily be done by administrative or legislative pronouncements rather than in the Constitution,&rdquo; he said. 
 
He said any change in the language of the Constitution Amendment Bill at this stage would mean it will have to go back to the Lok Sabha for approval. 
 
(Praveena Sharma/ DNA) 
&nbsp;

India's finance minister Arun Jaitley irons out issues of dual control, compensation in good and services tax bill amendment

India's finance minister Arun Jaitley's meeting with the empowered committee of state finance ministers on good and services tax (GST) on Tuesday ironed out matters relating to dual control, compensation guarantee for revenue loss to states and other key issues. The development is likely to help government pass the crucial Constitution (122nd) Amendment Bill for GST in the upper house of the Indian Parliament, the Rajya Sabha, in the ongoing monsoon session and steam roll opposition party Congress' objections. West Bengal state finance minister Amit Mitra, who heads the empowered panel, said there was consensus among states that businesses with turnover of up to 1.5 crore Indian Rupees should come under their jurisdiction while those with turnover of over Rs1.5 crore would be under the dual control of the state concerned and the Centre. "There was a standing issue on the question of dual control... Further, the states were also satisfied with wording (in the Constitution Amendment Bill) by which states will be guaranteed five years of compensation if there is any loss of revenue," he told the reporters after the meeting. Manufacturing states like Gujarat, Maharashtra, Tamil Nadu and others have expressed concern over loss of revenue due to GST, which is a destination tax. The Constitution Amendment Bill for GST, which will subsume all indirect taxes to create one single levy for the entire market, is stuck in the Rajya Sabha due to differences between the ruling National Democratic Alliance (NDA) and main opposition Congress over it. While the lower house (Lok Sabha), where the NDA has majority, has passed the Bill, the government failed to push it in the upper house for want of support. One of the major point of dispute is the GST rate. Congress has demanded that the rate be capped at 18 per cent and included in the Constitution. Mitra said the GST rate could be decided when the law is enacted. He said the "wording" for it had been "worked out". "The question of (GST) rate was very important. A wording has been worked out which essentially means that the incident of tax on the common man has to be significantly reduced (currently it is over 30 per cent), at the same time there should be a safeguard for existing level of revenues of the Union and states.These are the two objectives. A broad framework of words has been worked out and we hope that all political parties would be in agreement," he said. Mitra said the issue of disbursement of funds to the states from central consolidated pool was also discussed. “When the money goes into the Central government’s consolidated pool, it becomes difficult for that money to come out to the state. On that, there is a broad consensus and hopefully that has been resolved, which will be reflected in the Constitutional Amendment,” he said. Mitra, however, did not say anything on the 1 per cent additional tax that is one of major bone of contention with the Congress. It has asked for the extra levy, which will imposed on goods that are moved between states, to be completely scrapped as it will have a cascading impact and push up prices of goods. The industry has also opposed it. Rajeev Dimri, leader, indirect tax, BMR & Associates, said resolution of dual control issue was a small step in fine-tuning the GST Bill but it does not have to be included in the Constitution. “It can easily be done by administrative or legislative pronouncements rather than in the Constitution,” he said. He said any change in the language of the Constitution Amendment Bill at this stage would mean it will have to go back to the Lok Sabha for approval. (Praveena Sharma/ DNA)

With states on board, India one step closer to passing crucial tax bill amendment

With an eye on the politically crucial assembly polls in Uttar Pradesh scheduled next year, the much-awaited expansion of Prime Minister Narendra Modi-led cabinet will take place today. Major changes in portfolios are also expected in the reshuffle. 
 
In what can be seen as an attempt to woo the alliance partners, &nbsp;Prime Minister Narendra Modi has decided to expand his council of ministers by inducting 19 new faces, who will bring their unique rich experience and expertise to their office.&nbsp; 
 
Expansion comes after exhaustive whetting&nbsp; 
 
According to sources, the selection framework clearly laid out by the Prime Minister was to bring in &quot;doers and performers&quot;, who would deliver on his vision of development and good governance and further his central priority of &quot;gaon, garib and kisan&quot; (village, poor and farmers). &nbsp; 
 
The expansion comes after an exhaustive whetting and selection process to find out the best talent and people, who were assessed on the value they would bring to the union council of ministers, said sources. &nbsp; 
 
This marks a firm departure from the usual routine of frequent changes based on caste, religion and other time serving political considerations - and is a firm endorsement of the brand of developmental politics that the Prime Minister champions, they added. &nbsp; 
 
19 new ministers to be inducted&nbsp; 
 
The decision of expanding the Council of Ministers came after taking into consideration a diverse range of factors. The new ministers were identified from various walks of life, who would bring their unique rich experience and expertise to their office, said sources. 
 
Minister of state (MoS) for environment and forests Prakash Javadekar is likely to be elevated to the cabinet rank, while new ministers include PP Chaudhary, who is a senior Supreme Court advocate with over four-decade of experience in constitutional litigation, they said. 
 
Subhash Ram Rao Bhamre is another minister, who is a well-known doctor with a super specialisation in cancer surgery, whereas veteran editor and internationally acclaimed journalist MJ Akbar, former government officer from Rajasthan Arjun Ram Meghwal and author-cum-activist Anil Madhav Dave are among others to be inducted into the union council of ministers, said sources.&nbsp; 
 
State leaders having a hands-on understanding of state and local-level reality have been identified in particular, which includes Ramesh Jigajinagi, a former cabinet minister for home in Karnataka; Purshotam Rupala, former cabinet minister for agriculture in Gujarat; Jaswant Sinh Bhabhor, former minister of tribal affairs and rural development in Gujarat; and Mahendra Nath Pandey, former minister of urban development in Uttar Pradesh, they said.&nbsp; 
 
Besides, ministers having Central Government experience include Faggan Kulaste, former minister of state (MoS) for tribal affairs and Vijay Goel, former MoS for youth affairs and sports. Fresh talents have also been identified to bring their fresh perspective and exuberance, which include Anupriya Singh Patel, who comes with a strong academic base (LSR + MBA) as well as strong organisational skills, and Mansukh Mandaviya, who has spent a long time in Gujarat`s agricultural sector, including heading Gujarat Agro-Industries Corporation, said sources. 
 
Political veterans have also been identified to leverage on their decades of experience and understanding. &nbsp;They include six-term MP and one-term MLA Faggan Singh Kulaste, five-term MP and three-term MLA Ramesh Jigajinagi, five-term MP S.S. Ahluwalia, four-term MPs Vijay Goel and Rajan Gohain.&nbsp; 
 
According to sources, people with strong academic backgrounds have also been inducted in the Union Council of Ministers. The list includes Mahendra Nath Pandey, who has a PhD from the Banaras Hindu University, Subhash Ram Rao Bhamre, a super specialist in cancer surgery, and CR Chaudhary, who studied rural development at University of Birmingham. 
 
People from all communities and social backgrounds have been brought in, including two leaders from the Scheduled Tribes - Jaswant Sinh Bhabhor and Faggan Singh Kulaste, whereas from the Scheduled Castes category, five leaders - Ajay Tamta, Ramdas Athalwale, Arjun Ram Meghwal, Ramesh Jigajinagi and Krishna Raj- have been inducted.The list includes two leaders from the minority community M.J. Akbar and SS Ahluwalia, and two women leaders Anupriya Singh Patel and Krishna Raj. 
 
More so, leaders have been pulled in from all corners of the nation, said sources, adding that the 19 ministers come from more than 10 states, including Uttar Pradesh, Rajasthan, Gujarat, West Bengal, Maharashtra, Madhya Pradesh, Delhi, Uttarakhand, Karnataka and Assam.&nbsp; 
 
The new ministers are going to be strategically deployed to further the priority areas of the government.The Prime Minister, who had reviewed the performance of various ministries indicating a reshuffle earlier on June 30, last expanded his cabinet in November 2014. 
 
It may be recalled in November 2014, the Council of Ministers was expanded by adding four cabinet ministers, three Ministers of State (Independent Charge) and 14 Ministers of State, increasing the total size of the ministry from 45 to 66 ministers.The Cabinet was, however, leaner than the one headed by former prime minister Dr. Manmohan Singh during the UPA regime. The strength of Dr Singh-led UPA stood at 78 after its final reshuffle in October 2012.According to the Constitution, the total number of ministers in the Council of Ministers must not exceed 15 percent of the total number of members of the Lok Sabha ie 82.&nbsp; 
 
(ANI)&nbsp;

The selection framework laid out by the Prime Minister was to bring in 'doers and performers' who would deliver on his vision

With an eye on the politically crucial assembly polls in Uttar Pradesh scheduled next year, the much-awaited expansion of Prime Minister Narendra Modi-led cabinet will take place today. Major changes in portfolios are also expected in the reshuffle. In what can be seen as an attempt to woo the alliance partners, Prime Minister Narendra Modi has decided to expand his council of ministers by inducting 19 new faces, who will bring their unique rich experience and expertise to their office. Expansion comes after exhaustive whetting According to sources, the selection framework clearly laid out by the Prime Minister was to bring in "doers and performers", who would deliver on his vision of development and good governance and further his central priority of "gaon, garib and kisan" (village, poor and farmers). The expansion comes after an exhaustive whetting and selection process to find out the best talent and people, who were assessed on the value they would bring to the union council of ministers, said sources. This marks a firm departure from the usual routine of frequent changes based on caste, religion and other time serving political considerations - and is a firm endorsement of the brand of developmental politics that the Prime Minister champions, they added. 19 new ministers to be inducted The decision of expanding the Council of Ministers came after taking into consideration a diverse range of factors. The new ministers were identified from various walks of life, who would bring their unique rich experience and expertise to their office, said sources. Minister of state (MoS) for environment and forests Prakash Javadekar is likely to be elevated to the cabinet rank, while new ministers include PP Chaudhary, who is a senior Supreme Court advocate with over four-decade of experience in constitutional litigation, they said. Subhash Ram Rao Bhamre is another minister, who is a well-known doctor with a super specialisation in cancer surgery, whereas veteran editor and internationally acclaimed journalist MJ Akbar, former government officer from Rajasthan Arjun Ram Meghwal and author-cum-activist Anil Madhav Dave are among others to be inducted into the union council of ministers, said sources. State leaders having a hands-on understanding of state and local-level reality have been identified in particular, which includes Ramesh Jigajinagi, a former cabinet minister for home in Karnataka; Purshotam Rupala, former cabinet minister for agriculture in Gujarat; Jaswant Sinh Bhabhor, former minister of tribal affairs and rural development in Gujarat; and Mahendra Nath Pandey, former minister of urban development in Uttar Pradesh, they said. Besides, ministers having Central Government experience include Faggan Kulaste, former minister of state (MoS) for tribal affairs and Vijay Goel, former MoS for youth affairs and sports. Fresh talents have also been identified to bring their fresh perspective and exuberance, which include Anupriya Singh Patel, who comes with a strong academic base (LSR + MBA) as well as strong organisational skills, and Mansukh Mandaviya, who has spent a long time in Gujarat`s agricultural sector, including heading Gujarat Agro-Industries Corporation, said sources. Political veterans have also been identified to leverage on their decades of experience and understanding. They include six-term MP and one-term MLA Faggan Singh Kulaste, five-term MP and three-term MLA Ramesh Jigajinagi, five-term MP S.S. Ahluwalia, four-term MPs Vijay Goel and Rajan Gohain. According to sources, people with strong academic backgrounds have also been inducted in the Union Council of Ministers. The list includes Mahendra Nath Pandey, who has a PhD from the Banaras Hindu University, Subhash Ram Rao Bhamre, a super specialist in cancer surgery, and CR Chaudhary, who studied rural development at University of Birmingham. People from all communities and social backgrounds have been brought in, including two leaders from the Scheduled Tribes - Jaswant Sinh Bhabhor and Faggan Singh Kulaste, whereas from the Scheduled Castes category, five leaders - Ajay Tamta, Ramdas Athalwale, Arjun Ram Meghwal, Ramesh Jigajinagi and Krishna Raj- have been inducted.The list includes two leaders from the minority community M.J. Akbar and SS Ahluwalia, and two women leaders Anupriya Singh Patel and Krishna Raj. More so, leaders have been pulled in from all corners of the nation, said sources, adding that the 19 ministers come from more than 10 states, including Uttar Pradesh, Rajasthan, Gujarat, West Bengal, Maharashtra, Madhya Pradesh, Delhi, Uttarakhand, Karnataka and Assam. The new ministers are going to be strategically deployed to further the priority areas of the government.The Prime Minister, who had reviewed the performance of various ministries indicating a reshuffle earlier on June 30, last expanded his cabinet in November 2014. It may be recalled in November 2014, the Council of Ministers was expanded by adding four cabinet ministers, three Ministers of State (Independent Charge) and 14 Ministers of State, increasing the total size of the ministry from 45 to 66 ministers.The Cabinet was, however, leaner than the one headed by former prime minister Dr. Manmohan Singh during the UPA regime. The strength of Dr Singh-led UPA stood at 78 after its final reshuffle in October 2012.According to the Constitution, the total number of ministers in the Council of Ministers must not exceed 15 percent of the total number of members of the Lok Sabha ie 82. (ANI)

Indian cabinet set for reshuffle today?

Indian Prime Minister Narendra Modi today carried out a major expansion of his Council of Ministers, inducting 19 new faces, including several from the disadvantaged sections of India&#39;s caste riddled society as well as from poll-bound states like the northern Indian state of Uttar Pradesh. 
 
Prakash Javadekar, who held the independent charge of environment, was promoted to the cabinet rank while all new inductees took oath as ministers of state. 
 
Today&#39;s exercise underlines the ruling party&#39;s attempt at wooing the disadvantaged sections, whose votes would be crucial to its fortunes in key northwestern states like Uttar Pradesh and Gujarat. 
 
All barring Vijay Goel and Faggan Kulaste are new faces while a few have been ministers in the Bharatiya Janata Party (BJP)-ruled state governments. 
 
Ajay Tamta, Arjun Ram Meghwal, Krishna Raj, Ramdas Athawale, Ramesh C were MPs sworn in as ministers by Indian President Pranab Mukherjee at a ceremony in Rashtrapati Bhawan. 
 
Others who were inducted in the Modi government included Anupriya Patel, S S Ahluwalia, P P Chadudhary, C R Chaudhary, M J Akbar, J Bhabhor, Purshotam Rupala Mansukhbhai Mandaviya, S R Bhamre, Mahendra Nath Padey, A M Dave, Rajen Gohain. 
While Patel and Athawale are BJP allies, all others are from BJP. 
 
Among the 19 inductees, three MPs from Uttar Pradesh, Gujarat and Madhya Pradesh took oath while four from Rajasthan were also sworn in. 
 
Five ministers of state were dropped: Nihalchand, Ram Shankar Katheria, Sanwar Lal Jat, Manuskhbhai D Vasva and M K Kundariya. 
Today&#39;s expansion took the total strength of the Council of Ministers to 78, four below the Constitutional bar of 82. The Council of Ministers can have a maximum of 15 per cent of the total strength of the lower house of the Indian Parliament, Lok Sabha, which has 542 members. 
 
Official sources said the exercise was aimed at infusing more &quot;experience, expertise and energy&quot; into the government. 
 
The choices also underscore BJP&#39;s attempts to strengthen its vote base among dalits and other backward castes, party sources said, adding that states, where it has done well in the Lok Sabha polls and also where it faces state polls, have also now got ample representation. 
 
The &nbsp;party has been trying to woo the weaker sections ahead of the crucial Uttar Pradesh polls. 
 
(PTI)

The exercise underlines the ruling party's attempt at wooing the disadvantaged sections, whose votes will be crucial ahead of state polls

Indian Prime Minister Narendra Modi today carried out a major expansion of his Council of Ministers, inducting 19 new faces, including several from the disadvantaged sections of India's caste riddled society as well as from poll-bound states like the northern Indian state of Uttar Pradesh. Prakash Javadekar, who held the independent charge of environment, was promoted to the cabinet rank while all new inductees took oath as ministers of state. Today's exercise underlines the ruling party's attempt at wooing the disadvantaged sections, whose votes would be crucial to its fortunes in key northwestern states like Uttar Pradesh and Gujarat. All barring Vijay Goel and Faggan Kulaste are new faces while a few have been ministers in the Bharatiya Janata Party (BJP)-ruled state governments. Ajay Tamta, Arjun Ram Meghwal, Krishna Raj, Ramdas Athawale, Ramesh C were MPs sworn in as ministers by Indian President Pranab Mukherjee at a ceremony in Rashtrapati Bhawan. Others who were inducted in the Modi government included Anupriya Patel, S S Ahluwalia, P P Chadudhary, C R Chaudhary, M J Akbar, J Bhabhor, Purshotam Rupala Mansukhbhai Mandaviya, S R Bhamre, Mahendra Nath Padey, A M Dave, Rajen Gohain. While Patel and Athawale are BJP allies, all others are from BJP. Among the 19 inductees, three MPs from Uttar Pradesh, Gujarat and Madhya Pradesh took oath while four from Rajasthan were also sworn in. Five ministers of state were dropped: Nihalchand, Ram Shankar Katheria, Sanwar Lal Jat, Manuskhbhai D Vasva and M K Kundariya. Today's expansion took the total strength of the Council of Ministers to 78, four below the Constitutional bar of 82. The Council of Ministers can have a maximum of 15 per cent of the total strength of the lower house of the Indian Parliament, Lok Sabha, which has 542 members. Official sources said the exercise was aimed at infusing more "experience, expertise and energy" into the government. The choices also underscore BJP's attempts to strengthen its vote base among dalits and other backward castes, party sources said, adding that states, where it has done well in the Lok Sabha polls and also where it faces state polls, have also now got ample representation. The party has been trying to woo the weaker sections ahead of the crucial Uttar Pradesh polls. (PTI)

India's ministry reshuffle: 19 fresh faces inducted, 1 promoted

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