Mumbai: The model GST legislations will be taken up in Parliament as Money Bill, ET Now reported on Saturday. A Money Bill doesn’t necessarily need approval from Rajya Sabh, upper house of Parliament, to sail through.
Lok Sabha is not bound by including the amendments, if any, proposed by Rajya Sabha in the Money Bill. Lower house may or may not include changes put forward by upper house and can pass the bill in its original form.
The government presently has a full majority house in its favour in Lok Sabha, the lower house of Indian Parliament. In Rajya Sabha, government lacks numbers. This might be the reason why the government now wants to table model GST legislations only in Lok Sabha.
On Saturday, the all-powerful GST Council approved draft Compensation Bill that defines methods to share GST revenue between the Centre and the States. It also makes room for a compensation clause for states on loss of revenue.
In Indian parliamentary democracy, a bill is said to be a Money Bill if it has provisions for either imposition or abolition of taxes in country. Besides, a bill seeking appropriation of money out of the Consolidated Fund of India is also deemed as Money Bill.
A Money Bill originates in Lok Sabha after it received Presidential nod. The procedure how a Money Bill is initiated and then taken forward has been explained and enshrined in Article 109 of Indian Constitution.
