The Centre on Saturday sought the support of the new communist party led government in Kerala for the passage of the goods and services tax bill.
Just days after taking over, Kerala chief minister Pinarayi Vijayan met Prime Minister Narendra Modi, finance minister Arun Jaitley and other Union ministers in his first visit to the national capital.
Both the prime minister and the finance minister sought Kerala’s support for GST and pointed out that it will be beneficial for the state, said Vijayan in a press conference after the meetings.
Kerala being a consuming state stands to benefit from GST, which is a destination-based tax.
However, the Communist Party of India (Marxist) is not supporting the bill in Parliament. The Constitution amendment bill, which needs to be passed by a two-third majority, is pending for legislative passage in Rajya Sabha where the National Democratic Alliance is short of numbers.
Jaitley has said that the government is confident that the bill will be passed in the upcoming monsoon session if voted on.
With Congress insisting that it will support the bill only if its demands regarding capping the rate in the bill and it inclusion of a dispute resolution panel are met, the government will need the support of all non-Congress parties for achieving a two-third majority in a 245 member house.
In the meeting, Modi assured the centre’s full support to the state, Vijayan said.