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The President addressed the Parliament after the 2009 Lok Sabha Elections on 4th June 2009.  She also addressed Parliament on 22nd February 2010, as well as on 21st February 2011.  The tables below highlight some items from the agenda of the central government as outlined in these speeches, as well as the initiatives undertaken with respect to these agenda items. Table 1: Some Items from the President’s Address to Parliament on 4th June 2009

Agenda Items outlined in the President’s Speech Current Status
Establishment of National Counter-Terrorism Centre Proposed launch of NCTC in March 2011 on hold
Enactment of legislation for prevention of communal violence Communal Violence Bill 2005 pending in Parliament. New bill drafted by NAC but not introduced in Parliament
Unique Identity Card scheme to be implemented in three years Unique Identification Authority of India created under Planning Commission on 28 January 2009.  Bill to give statutory status pending in Parliament
Establishment of a regulator for the pension sector Bill introduced in Lok Sabha on 24 March 2011
Convergence of NREGA with other programs; expansion of works permitted; independent monitoring and grievance redressal  
Rashtriya Swasthya Bima Yojana to cover all families below the poverty line in five years  
Enactment of Right to Free and Compulsory Education Bill Bill passed in 2009 and brought into force on 1 April 2009
Madhyamik Shiksha Abhiyan to universalize access to secondary education Rashtriya Madhyamik Shiksha Abhiyan launched in March 2009
National Mission for Female Literacy to make every woman literate in five years National Literacy Mission recast in 2009 to focus on female literacy
Construction of 1.2 crore rural houses under Indira Awas Yojana in five years  
Introduction of Rajiv Awas Yojana for slum dwellers and urban poor Phase I approved by Cabinet on 2 June 2011
Enactment of National Food Security Act Introduced in Lok Sabha on 22 December 2011
Enactment of Amendment Bill to Land Acquisition Act and Rehabilitation and Resettlement Bill Land Acquisition, Rehabilitation and Resettlement Bill 2011 introduced in Lok Sabha on 7 September 2011
Enactment of Women’s Reservation Bill Passed by Rajya Sabha, pending in Lok Sabha
Constitutional Amendment for 50 percent reservation for women in panchayats and urban local bodies Two Bills introduced in Lok Sabha in November 2009; both pending in Parliament
Amendment of RTI to provide for disclosure by government in all non-strategic areas  
Model Public Services Law to be drawn up in consultation with states Right of Citizens for Time Bound Delivery of Goods and Services and Redressal of their Grievance Bill,     2011 introduced in Lok Sabha on 20 December 2011
Introduction of Goods and Services Tax Constitutional Amendment Bill introduced in Lok Sabha on 22 March 2011
National Council for Human Resources in Health Introduced in Rajya Sabha on 22 December 2011
National Council for Higher Education Bill introduced in Rajya Sabha on 28 December 2011

*Note: Blank cells indicate that PRS has not been able to find official information in the public domain. Table 2: Some Items from the President’s speech to Parliament on 22nd February 2010

Agenda Items outlined in the President’s Speech Current Status
Introduction of legislation to ensure food security Introduced in Lok Sabha on 22 December 2011
Rural teledensity of 40 percent by 2014 Rural teledensity of 33% as of February 2011
Introduction of Rajiv Awas Yojana for urban poor and slum dwellers Phase I approved by Cabinet on 2 June 2011
Disposal of remaining claims under the Scheduled Tribes  and Other Traditional Forest Dwellers Act  
Introduction of amendment to the Wakf Act Passed by Lok Sabha; pending in Rajya Sabha
Enactment of Communal Violence (Prevention, Control and Rehabilitation of Victims) Bill, 2005 Pending in Rajya Sabha since 2005
Enactment of Women’s Reservation Bill Passed by Rajya Sabha; pending in Lok Sabha
Constitutional amendments for 50 percent reservation for women in panchayats and urban local bodies Two Bills introduced in Lok Sabha in November 2009; both pending in Parliament
Establishment of National Council for Higher Education and Research Higher Education and Research Bill, 2011 introduced in Rajya Sabha on 28 December 2011
Legislation for facilitating participation of foreign academic institutions in the education sector Foreign Educational Institutions Bill, 2010 introduced in Lok Sabha on 3 May 2010
Voting rights for Indian citizens living abroad Bill passed.  NRIs can vote at the place of residence that is mentioned in their passport

Table 3: Some Items from the President’s speech to Parliament on 21st February 2011

Agenda Items outlined in the President’s Speech Current Status
Enactment of Food Security Law Introduced in Lok Sabha on 22 December 2011
Whistleblower Bill Bill passed by Lok Sabha; pending in Rajya Sabha
Enactment of Judicial Standards and Accountability Bill Introduced in Lok Sabha on 1 December 2010
Enactment of new Mines and Minerals Bill Introduced in Lok Sabha on 12 December 2011
Rural teledensity of 40 percent by 2014 Rural teledensity of 33% as of February 2011
Construction of 1.2 crore rural houses during 2009-14  
Enactment of Women’s Reservation Bill Passed by Rajya Sabha; pending in Lok Sabha
Introduction of Bill regarding protection of children from sexual offences Introduced in Rajya Sabha on 23 March 2011
Introduction of Biotechnology Regulatory Authority of India Bill Not introduced till date

Yesterday, the government circulated certain official amendments to the Constitution (122nd Amendment) Bill, 2014 on GST.  The Bill is currently pending in Rajya Sabha.  The Bill was introduced and passed in Lok Sabha in May 2015.  It was then referred to a Select Committee of Rajya Sabha which submitted its report in July 2015.  With the Bill listed for passage this week, we explain key provisions in the Bill, and the amendments proposed. What is the GST? Currently, indirect taxes are imposed on goods and services.  These include excise duty, sales tax, service tax, octroi, customs duty etc.  Some of these taxes are levied by the centre and some by the states.  For taxes imposed by states, the tax rates may vary across different states.  Also, goods and services are taxed differently. The Goods and Services Tax (GST) is a value added tax levied across goods and services at the point of consumption.  The idea of a GST regime is to subsume most indirect taxes under a single taxation regime.  This is expected to help broaden the tax base, increase tax compliance, and reduce economic distortions caused by inter-state variations in taxes. What does the 2014 Bill on GST do? The 2014 Bill amends the Constitution to give concurrent powers to Parliament and state legislatures to levy a Goods and Services tax (GST).  This implies that the centre will levy a central GST (CGST), while states will be permitted to levy a state GST (SGST).  For goods and services that pass through several states, or imports, the centre will levy another tax, the Integrated GST (IGST). Alcohol for human consumption has been kept out of the purview of GST.  Further, GST will be levied on 5 types of petroleum products at a later date, to be decided by the GST Council.  The Council is a body comprising of Finance Ministers of the centre and all states (including Delhi and Puducherry).  This body will make recommendations in relation to the implementation of GST, including the rates, principles of levy, etc.  The Council is also to decide the modalities for resolution of disputes that arise out of its recommendations. States may be given compensation for any revenue losses they may face from the introduction of the GST regime.  Such compensation may be provided for a period of up to five years. Further, the centre may levy an additional tax, up to 1%, in the course of interstate trade.  The revenues from the levy of this tax will be given to the state from where the good originates.  Expert bodies like the Select Committee and the Arvind Subramanian Committee have observed that this provision could lead to cascading of taxes (as tax on tax will be levied).[i]  It also distorts the creation of a national market, as a product made in one state and sold in another would be more expensive than one made and sold within the same state. What are the key changes proposed by the 2016 amendments? The amendments propose three key changes to the 2014 Bill.  They relate to (i) additional tax up to 1%; (ii) compensation to states; and (iii) dispute resolution by the GST Council.

  • Additional tax up to 1% on interstate trade: The amendments delete the provision.
  • Compensation to states: The amendments state that Parliament shall, by law, provide for compensation to states for any loss of revenues, for a period which may extend to five years. This would be based on the recommendations of the GST Council.  This implies that (i) Parliament must provide compensation; and (ii) compensation cannot be provided for more than five years, but allows Parliament to decide a shorter time period.  The 2014 Bill used the term ‘may’ instead of ‘shall’.   The Select Committee had recommended that compensation should be provided for a period of five years.  This recommendation has not been addressed by the 2016 amendments.
  • Dispute resolution: The GST Council shall establish a mechanism to adjudicate any dispute arising out of its recommendations. Disputes can be between: (a) the centre vs. one or more states; (b) the centre and states vs. one or more states; (c) state vs. state.  This implies that there will be a standing mechanism to resolve disputes.

These amendments will be taken up for discussion with the Bill in Rajya Sabha this week.  The Bill requires a special majority for its passage as it is a Constitution Amendment Bill (that is at least 50% majority of the total membership in the House, and 2/3rds majority of all members present and voting).  If the Bill is passed with amendments, it will have to be sent back to Lok Sabha for consideration and passage.  After its passage in Parliament, at least 50% state legislatures will have to pass resolutions to ratify the Bill. Once the constitutional framework is in place, the centre will have to pass simple laws to levy CGST and IGST.  Similarly, all states will have to pass a simple law on SGST.  These laws will specify the rates of the GST to be levied, the goods and services that will be included, the threshold of the turnover of businesses to be included, etc.  Note that the Arvind Subramanian Committee, set up by the Finance Ministry, recommended the rates of GST that may be levied.  The table below details the bands of rates proposed.

Table 1: Rates of GST recommended by Expert Committee headed by Arvind Subramanian
Type of rate Rate Details
Revenue Neutral Rate 15% Single rate which maintains revenue at current levels.
Standard Rate 17-18% Too be applied to most goods and services
Lower rates 12% To be applied to certain goods consumed by the poor
Demerit rate 40% To be applied on luxury cars, aerated beverages, paan masala, and tobacco
Source: Arvind Subramanian Committee Report (2015)

Several other measures related to the back end infrastructure for registration and reporting of GST, administrative officials related to GST, etc. will also have to be put in place, before GST can be rolled out. [For further details on the full list of amendments, please see here.  For other details on the GST Bill, please see here.]