LOK SABHA ___ SYNOPSIS of DEBATES (Proceedings Other Than

SYNOPSIS OF DEBATES (Proceedings other than Questions & Answers) ______

Thursday, August 9, 2018 / Shravana 18, 1940 (Saka) ______

REFERENCE BY THE SPEAKER

HON. SPEAKER: Hon. Members, today is 9th August. This date has special significance in the history of our country. It was on this day 76 years back in the year 1942 that Mahatma Gandhi gave a clarion call for solidarity among all the countrymen to free the country from the clutches of the British Rule by launching 'Quit India Movement'. The 'Quit India Movement' had been one of the most important moments of our freedom struggle which played a crucial role in achieving the dreamy goal to free our nation. On this occasion, on my own behalf and on behalf of the House, I would like to pay tribute to Father of the Nation as well as those martyrs who laid down their lives in the struggle for freedom and also many more other freedom fighters comprising both men and women who sacrificed their everything for the sake of our motherland. We re-dedicate ourselves to their high ideals to which they remained committed. Post independence, we take a resolve on this day for our independence, sovereignty, security and unity.

The Members then stood in silence for a short while.

______ANNOUNCEMENT BY THE SPEAKER

HON. SPEAKER: Hon. Members, in exercise of the powers conferred under Article 120(1) of the Constitution of India, it gives me pleasure to inform the

House that from now onwards the Members would be able to express their views in any of the 22 languages included in the Eighth Schedule to the Constitution. So far, the facility of simultaneous interpretation was available to us only in 17 languages. We have since made arrangements for simultaneous interpretation of the speeches made in the remaining five languages i.e. Dogri, Kashmiri, Konkani,

Santhali and Sindhi in collaboration with Rajya Sabha. However, under this arrangement, a 24 hour prior notice would be necessary to make the interpreters available with the cooperation of Rajya Sabha.

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THE DNA TECHNOLOGY (USE AND APPLICATION) REGULATION

BILL, 2018

THE MINISTER OF SCIENCE AND TECHNOLOGY, MINISTER

OF EARTH SCIENCES AND MINISTER OF ENVIRONMENT, FOREST

AND CLIMATE CHANGE (DR. HARSH VARDHAN) moved that the leave be granted to introduce a Bill to provide for the regulation of use and application of

Deoxyribonucleic Acid (DNA) technology for the purposes of establishing the identity of certain categories of persons including the victims, offenders, suspects, undertrials, missing persons and unknown deceased persons and for matters connected therewith or incidental thereto.

SHRI ADHIR RANJAN CHOWDHURY opposing the motion for introduction of the Bill, said: I do vehemently oppose the introduction of the Bill as the Bill provides that the DNA samples can be collected from any accused, whether he has given it voluntarily or is compelled to give his DNA under direction of the court. Secondly, this is a gross violation of the provision of the

Constitution and against the Fundamental Right to Life. The collection of DNA can be misused by police officials to create evidence against the accused. So, I would suggest the Government that there is a need of more scruitny to be done by expert with regard to this Bill. The Bill should also take into consideration the holistic and comprehensive nature of this legislation. So, I would suggest that the

Bill should be sent to the competent authority for further scrutiny.

DR. HARSH VARDHAN replying said: This Bill has gone through comprehensive scrutiny of experts, Ministries and even a committee comprising

Home Minister, Law Minister and Finance Minister including myself. This Bill started its journey at the time of the erstwhile NDA Government and all these years, it has gone through so many scrutinies. Moreover, it is the need of the hour to bring this Bill for this country to ensure that there is a regulation for the DNA testing laboratories and DNA data bank. I can assure this House that all the privacy concerns have been adequately addressed in this Bill.

The Bill was introduced. ______

*MATTERS UNDER RULE 377

(1) SHRI BHAIRON PRASAD MISHRA laid a statement regarding

need to extend services of Udaipur - Khajuraho Express upto

Manikpur junction and Saryu Express upto Chitrakoot Dham or

Banda in Uttar Pradesh.

(2) SHRI NIHAL CHAND laid a statement regarding need to provide

Rajasthan its due share of Sutlej river water.

(3) SHRI VIKRAM USENDI laid a statement regarding alleged

irregularities in mining activities in Metabodeli village in Kanker

district of Chhattisgarh.

(4) SHRI LAKHAN LAL SAHU laid a statement regarding need to

include Chhattisgarhi language in the Eighth Schedule to the

Constitution.

(5) SHRI BIDYUT BARAN MAHATO laid a statement regarding load

carrying capacity of heavy vehicles.

(6) SHRI DHARAMBIR laid a statement regarding shortage of water in

the country.

(7) SHRI GOPAL SHETTY laid a statement regarding providing civic

amenities in Mumbai slums.

* Laid on the Table as directed by the Speaker. (8) SHRI RAMEN DEKA laid a statement regarding banning of plastic

carry bags.

(9) SHRI RAMDAS C. TADAS laid a statement regarding need to

expedite land acquisition work for Wardha-Yavatmal-Nanded railway

line in Maharashtra.

(10) SHRI SHARAD TRIPATHI laid a statement regarding

encroachments around places of historical importance associated with

Sant Kabir in Uttar Pradesh.

(11) SHRI NISHIKANT DUBEY laid a statement regarding pending

railway projects in Jharkhand.

(12) SHRI RAMESHWAR TELI laid a statement regarding a weekly

train from Dibrugarh to Mumbai.

(13) SHRIMATI MALA RAJYALAKSHMI SHAH laid a statement

regarding need to introduce Toy Train between Mussorie and

Dehradun.

(14) SHRI D. K. SURESH laid a statement regarding problems faced by

mango growers in Karnataka.

(15) SHRI M.I. SHANAVAS laid a statement regarding banning of

confession in Church.

(16) SHRI R. GOPALAKRISHNAN laid a statement regarding

establishment of National Institute of Pharmaceutical Education and

Research at Madurai. (17) SHRI K. ASHOK KUMAR laid a statement regarding supply of

safe drinking water in the country.

(18) SHRI RABINDRA KUMAR JENA laid a statement regarding salt

farming in Balasore Parliamentary Constituency of Odisha.

(19) SHRI PREM SINGH CHANDUMAJRA laid a statement regarding

need to renaming of International Airport at Chandigarh/Mohali after

Shaheed Bhagat Singh.

(20) SHRI DHARAM VIRA GANDHI laid a statement regarding the

condition of Sikh community in Meghalaya.

(21) SHRI NABA KUMAR SARNIA laid a statement regarding need to

ensure peace in BTC areas in Assam.

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STATUTORY RESOLUTIONS

(i) Re: Approval of Notification No. 43/2018 - Customs

THE MINISTER OF RAILWAYS, MINISTER OF COAL, MINISTER

OF FINANCE AND MINISTER OF CORPORATE AFFAIRS (SHRI

PIYUSH GOYAL) moved that in pursuance of section 8A(1) of the Customs

Tariff Act, 1975, read with sub-section(3) of section 7 of the said Act, this House hereby approves of notification No. 43/2018-Customs, dated 10th April, 2018 which seeks to increase tariff rate of basic customs duty (BCD) on three tariff items covered under tariff sub head 0404 10 (Whey and modified Whey, whether or not concentrated or containing added sugar or other sweetening matter) and under tariff item 0404 90 00 (Other Whey) from 30% to 40%.

The Resolution was adopted.

(ii) Re: Approval of Notification No. 45/2018 - Customs

THE MINISTER OF RAILWAYS, MINISTER OF COAL, MINISTER

OF FINANCE AND MINISTER OF CORPORATE AFFAIRS (SHRI

PIYUSH GOYAL) moved that in pursuance of section 8A(1) of the Customs

Tariff Act, 1975, read with sub-section(3) of section 7 of the said Act, this

House hereby approves of notification No. 45/2018-Customs, dated 23rd May,

2018 which seeks to increase tariff rate of basic customs duty (BCD) on

Walnuts in shell from 30% to 100% and increase tariff rate of basic customs

duty (BCD) on Protein concentrates and textured protein substances from 30%

to 40%.

The Resolution was adopted.

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THE CENTRAL GOODS AND SERVICES TAX (AMENDMENT) BILL,

2018

THE INTEGRATED GOODS AND SERVICES TAX (AMENDMENT)

BILL, 2018 THE UNION TERRITORY GOODS AND SERVICES TAX

(AMENDMENT) BILL, 2018

AND

THE GOODS AND SERVICES TAX (COMPENSATION TO STATES)

AMENDMENT BILL, 2018

THE MINISTER OF RAILWAYS, MINISTER OF COAL, MINISTER

OF FINANCE AND MINISTER OF CORPORATE AFFAIRS (SHRI

PIYUSH GOYAL) moving the Motions for consideration of the Bills, said: The

GST has been passed with the unanimous support and cooperation of all the State

Governments and the Union Government and is truly an example of cooperative and collaborative federalism at its very best. I think that the way the whole country has accepted the GST in a splendid and simple method, and the way the

GST council has functioned so far has placed before the entire country a new yardstick. It has been the endeavour of the government to bring down the burden on the customers and reduce the compliance burden of those who run a business or industry to facilitate them in their work. All the hon. Members would be happy to know that rates have been reduced during the last one year in about 384 commodities and 68 services. Along with it, the way we could collect tax in adequate amount and in simple manner is in itself historical. The idols made of wood, clay and stones have been made tax free. Only 5 per cent tax rate has been fixed on Kota stone till its product is completely processed and polished. The GST council has resolved fully the concern of the textile sector. Refund facility in toto has been provided with regard to the input tax credit which remains of the small traders after 1st August. Rakhi, sanitary pads have been completely exempted from the GST. We are going to celebrate the 150th birth anniversary of Mahatma

Gandhi this year. We have made the Charkha tax free. Artisans associated with handicrafts have also been given many facilities by the GST council. We have to take care of the consumers instead of aiming for revenue maximization. Wherever the rates will be less, compliance will improve. We intend to reduce the rates even on the few items still under 28% category which appears to be too much for the common man. People were much concerned about refunds earlier. Today there is almost no problem of refund to anyone in the country. The exporters having refund requirement of less than 10 lakhs will have to provide a self certification only. Exporters requiring more than 10 lakh refund, need to provide only a certificate of a chartered accountant which will be examined later at the time of audit. Traders having a turnover of less than Rs. 1 crore have to file quarterly returns. Now, 93 per cent traders and industry operators who pay GST have to pay quarterly returns. They have to deposit their tax on monthly basis but need to file the returns on quarterly basis. The trader who has taken GSTR, but has zero sales and zero purchase with no turnover, has been given the facility to file his return through an SMS from his phone. The SMS will be treated as return. Four amendments are being brought in the law to make the law a good and simple tax.

The law has been amended to ensure that small service providers could be brought under the composite scheme. As such, a number of significant changes are being brought in this law by different methods. Reverse charge mechanism has been put in abeyance, deferred for 16 months till September, 2019. Provision has been made to enable the GST council to decide in future when and how the reverse charge mechanism is required to be introduced or otherwise. Earlier, input credit tax was not provided in certain items such as in textile items. Now, that will also be available and refunds will also be given. Such a provision has been made that more input credit could be accrued in case of general insurance of vehicles, their repairing and maintenance. If the business is at different places, registrations could be obtained separately, but for the purpose of turnover and tax, all will be incorporated for tax collection. The government has brought about changes in the law, reduce the rates of tax and simplified the procedures taking along all the

States. For every State, 14 per cent guaranteed year on year growth has been ensured. The economy of this country is estimated to grow this year at the rate of

7.3 per cent. Next year, it is likely to grow by 7.5 per cent. The IMF report states that the fundamental changes which have been brought in the Indian economy has given strength to it. As per the direction of the hon. Prime Minister, we are transforming and reforming India and showing our performance. The Modi

Government has implemented the recommendation of the Swaminathan

Commission to ensure 1.5 times of the cost of produce to the farmers.

SHRI MALLIKARJUN KHARGE: Initiating Said: The GST Bill, which has been introduced here, was passed by all of us. We have never said that GST is not good. The GST bill was brought in the interest of the country and the public at large. But, all the people and small scale industries have been wracked and ruined.

Nearly 50 thousands SSIs have been closed in Tamil Nadu and 5,00,000 persons have become unemployed. It has affected at least 3 crore persons in the country.

Whatever agreement has been arrived at, transfer of technology is not included in that. Thousands of people could have got jobs had this technology been transferred to the HAL. The man who has no experience in this field has been given the contract. It is loss to the country, it is security threat. Who authorised the Prime

Minister so he did not sought the approval from the cabinet, of the CCS and of the

Finance Committee. Even the statement of Foreign Secretary given one day before the PM set to his journey to France shows that he was not aware that the PM was going to announce Rafel deal.

SHRI SUBHASH CHANDRA BAHERIA: The government has introduced these amendment Bills for the simplification of GST. The GST was brought so that it should be a simple and good tax, nobody feel harassed, and to collect more revenues. It is the decision of the government that the exporters are getting their tax refund without any problem. The proposed amendment will facilitate people to get separate numbers for running their business. Two more items have been added in schedule-III. I request that ITC-04 meant for textile should be little more simplified. I suggest that instead of giving refund, the input- tax rate should be made equal to out-put tax rate. It will close the process of refund and the department will be free from the burden of giving refund to 90 lac traders. DR. J. JAYAVARDHAN: The Goods and Services Tax (GST) has been one of the most ambitious and path-breaking economic reforms ever undertaken in our country’s history. The Government has introduced four Bills to ensure smooth transition of existing taxpayers to the new GST regime, and to overcome certain difficulties faced in the new tax regime. The filing of returns is a cumbersome process to be undertaken monthly and hence it should be relaxed. I would request the hon. Minister to take necessary action in regarding the problems being faced in the GSTN portal. It is to be noted here that a large amount of IGST remains unsettled even after the second provisional settlement of Rs. 50,000 crore made on

27 June 2018.I request the hon. Minister to take necessary and immediate action in this regard as Tamil Nadu Government is facing considerable fiscal stress and it is important that our legitimate dues are paid to us. We feel that reduction in rates of tax on job work to 5per cent would considerably mitigate MSMEs burden, without adverse effect on revenue, since it is an intermediate step. The auto components, being intermediate goods, need not be taxed at 28 per cent and may be reduced to

18 per cent. we would, suggest that the rate of interest for belated payment of tax up to a quarter for taxpayers having turnover up to Rs.5 crore may be charged at a lower rate of 12per cent. The GSTN come up with a very simple and user-friendly design that facilitates self-filing like in the case of IT returns without discrepancy and dependency on others. The GSTN should, on a priority basis, put in place a mechanism for hassle-free refund without intervention of tax authorities. Timely refund to the MSME sector will remove blockage of working capital. I request the hon. Minister to initiate the process required for reducing the tax on 72 goods and ten services put forth by the Government of Tamil Nadu to encourage MSME sector. The GST has adversely impacted exports. I request the Central Government to refrain from imposing of cess over and above the GST. No tax system could claim to be flawless and the GST indeed has its own shortcomings and drawbacks.

But taking into consideration the individual States and multiple stakeholders’ view and addressing them systematically and strengthening our enforcement agencies to check evasion will truly solve the problems.

PROF. SAUGATA ROY: The four GST Bills have brought in certain changes, an annual turnover up to Rs. 15 million will be allowed to opt for the composition scheme. The scheme provides for a flat and concessional GST rate but does not give input tax credit. As per the claim of the Government, the bills, aimed at helping the MSME sector and small traders and GST return forms Sahaj and

Sugam will be introduced to bring about ease of doing business and the amendments will allow employers to claim input tax credit on facilities which is food, transport and insurances provided to employees. Because of election, suddenly the GST Council has slashed GST on 100 items of mass use. Big companies like Samsung and LG will make a killing. These tax sops will lead to the loss of a huge amount. Almost Rs. 12,000 crore of income will be gone. I want to know from the Minister from where that money will come. Contrary to the BJP claims, the GST has only encouraged malpractices, corruption and black money. It is so complicated that the small and medium sellers and shopkeepers shy away from it. Many people are avoiding GST altogether, they just keep a few items on

GST list, show that they are following the GST regime and sell the rest of items and usual without paying the GST. The government is deprived of genuine taxes.

Retailers and wholesalers charge arbitrarily more in the name of GST. At the time of introduction of GST, our Chief Minister had said, "Before your system is in order, do not introduce GST in a hurry." As Mr. Modi wanted to announce it from the Central Hall at midnight of 31st July, they introduced it. Small entrepreneurs and exporters are facing the problem of refund. As a result, their money is stuck and they cannot invest further. GST has made the process far more difficult.

Industry in Tiruppur in Tamil Nadu are on the verge of closure. In principle 'one nation' one tax' is very good. There are five taxes. There are many anomalies with regard to GST. For instance, Haj for Muslims is five per cent for private operators and 18 per cent for the Haj committee of states. How does the Government monitor the anti-profiteering authority? There are different rates in different states. Solar equipment in Karnataka, it is five per cent; but in Maharashtra, it is 18 per cent.

Today, e-commerce has become a big business. Who is monitoring the GST on e- commerce? This business is of $ 27 billion. How much is the Government getting?

I ask a specific question to the Finance Minister. If you do not improve GST, the

Moody's rating will come down. Our Finance Secretary did a cut and paste job with GST. It was copied from Malaysia. Malaysia is scrapping GST, Australia and

New Zealand are going to withdraw GST. If Puratchi Thalaivi Amma was there,

GST would not have taken place. She is the one who resisted GST till the last. SHRI KALIKESH N. SINGH DEO: Hon. Minister coined GST as Good and Simple Tax. It is so good and simple that to make an amendment to one Bill he had to introduce four Bill to it. India has something like seven rates of GST. GST is so simple that every tax-payer have to file almost 37 tax returns every year, three every month and the end of the year they file the annual return. I am proud to say that our party, BJD supported both the UPA, when they brought that concept out and the NDA when it tabled the concept on the floor of this House. We need to understand that the business community of India is suffering. Our voters are

MSME that is the engine of growth for India. 80% of our employment comes from there and we are stifling them with the GST. Each of them spends from the first of every month to the 10th of every month with the Chartered Accountant. The cost of compliance has gone up by five or six times. Only Chartered Accountants have benefited from this. There should be no grey areas left in taxation. When authorities given different rulings, it means that the law itself is at fault. You have not clarified the laws. A lot more needs to be done to ensure that compliance is easy. As long as compliance is not easy, I can assure you that you will not meet your income targets. We have to trust our tax payers. If compliance is easy. People willing and voluntarily will come forward to pay the tax. Now, the GST has been put on Mahua. How will a village persons, who is buying flowers from these tribal ladies, comply with the GST tax structure? The Government has already paid Rs.

60,000 crore as compensation to the States. Now, Rs. 34,000 crore is mismatched between the return which have been filed. Now, the NIC, which has been given a responsibility of giving e-way bills, is not able to take the load of e-way bills. I would like to press upon the Minister to make the tax simple, make the tax easy and make it easy for people to pay tax. People should not be scared of paying the tax.

SHRI ANANDRAO ADSUL: The Congress only proposed to bring the

GST was in power when it was in power, but never brought it. The GST was the need of the Country. It is a very good concept and being implemented since the last one year. Whenever a new law or a thought is implemented, it takes sometime to get settled. Today, the government is going to make 46 changes. Small entrepreneurs were given relief through the introduction of composition scheme.

The government has exempted the sanitary napkins from taxation. The government has reduced the GST from 28 to 18 % on several items bring used in middle class families. We should appreciate that our economy has become 6th largest economy in the world. Despite all these things several questions haunt all of us, why the value of our Rupees is falling day by day? Why the rates of petrol and diesel are rising. Why are the common men not able to get the benefits of booming economy? All the schemes and programmes started by the government are very good, but they have not reached to grassroots level. Unless these are not monitored properly, these will not be able to give their desired results. If a young man wants to start his own business, he should be provided the loan up to Rs. 10 lac without any security. This forum is meant to discuss issues. If the elections are just around the corner, but, even then it should not be used for election campaign. SHRI JAYADEV GALLA: The people of Andhra Pradesh are watching every move. They are not fools and political or legislative illiterates. They will give a befitting reply in the coming elections. So, all I appeal to please include

Andhra Pradesh also under Article 297A and, as promised and should extend all benefits given to Special Category States to Andhra Pradesh. Nothing unique has been given to Andhra Pradesh. The second part is how Andhra Pradesh is deprived of the GST benefit. We have lost a minimum of Rs. 3,000 crore. We have lost the advantage of a well developed Capital like Hyderabad, which provide most of the tax revenues of the undivided Andhra Pradesh. Five per cent GST is imposed on red chillies, whereas it is zero per cent on green chilles. Now, Guntur constituency, which I represent, is the world's leading producer of chillies. They dry the green chilles under the sun to make them red chillies. There is no processing involved.

But five per cent GST is there for red chillies.

SHRI KONDA VISHWESHWAR REDDY: Let me start with the

MPLADS. Two years back we were looking up hopefully that the MPLADS would go up but the GST took off 18 per cent from our MPLADS. Further, my

Constituency is one of the largest producers of the Bluestone. Under the GST regime the taxes were increased from 4 per cent to 28 per cent and now it has been reduced to 12 per cent. So, a great injustice is being done. The GST provisions are ambiguous. The napa stone cut into blocks attract five per cent GST and all others fall under 28 per cent. All others are called tiles. If the Tax Officer is not treated well, it suddenly becomes a tile and same thing becomes a block. So, it has introduced ambiguity. As regards GST collection, the hon. Minister promised to make up for any shortfall in GST collection but our State is a growing State. Our

GST collections have come down. The health equipment and all other things are falling under 28 per cent. How can it be justified? The last frontier of GST is petrol and alcohol. On that the States should have control. There is one thing about apartments which are under construction. If it is fully constructed, there is no GST and if it is under construction, there is GST. There are many anomalies like that. These need to be addressed very quickly.

SHRI P. KARUNAKARAN: After introduction of the GST, the Centre has changed the funding pattern of the centrally sponsored schemes. Now, more and more financial burden is being thrown on the shoulders of the States. The GST put huge burden on the small and medium sectors and many of them left their business.

The other issue is about the distribution of revenues between the Centre and the

States. There is undistributed fund with the Centre but the States are not getting the fund. After these amendments, some sections of the industry could be affected by the provisions relating to restrictions on transfer of credit balance. This would be against the tax compensation. In 2017-18, the average revenue trend has shown a shortfall of 13 per cent at all India level and there has been a revenue gap of nearly Rs.6000 crore every month. With the reduction in the rates of GST, the loss would range from Rs.8000 crore to Rs.10,000 crore. GST has encouraged malpractices in the last one year. We have seen no reduction in corruption and circulation of black money. The GST has allowed the prices grow steeply. I want to know whether the Government is going to take any step with regard to petrol and diesel in terms of GST.

SHRIMATI BUTTA RENUKA: In view of the importance of the textile and handloom industry in our economy, I request the hon. Minister to exempt both the textile and handloom sectors from the GST. The highest slab of 28 per cent needs to be taken off and all the products in that bracket need to be adjusted in a lower slab. GST is supposed to be a good and simple tax but it has become cumbersome process. I request the hon. Minister to make it simpler so that entrepreneurs can follow it easily.

SHRI PREM SINGH CHANDUMAJRA: The tax reform in the form of

GST is very important for the country. It has removed difficulties on the one hand and plugged tax leakages on the other hand. But some more reforms are required in this tax system. Goods used by common man should not be placed in tax slab of more than 18 percent. There are a number of such goods which have been placed under 28 percent tax slab. 186 goods have been exempted and 89 services have also been exempted. But most importantly, exemptions should be for agricultural sector. Diesel and Petrol should also be brought under GST. Truck Body building is also related with agriculture and it should be brought under 18 per cent tax slab.

The filing of GST returns should be further simplified.

SHRI DHARAM VIRA GANDHI: I welcome the proposal of new reforms in the GST. Our country has federal structure. All the welfare schemes in the fields of education, employment, healthcare, transport, agriculture etc are implemented by the states. But when it comes to taxation regime, the prevailing regime is not federal in spirit. Fiscal position of the Centre is very good, but fiscal deficit position of several states is deteriorating. The Centre provides financial assistance with the condition that specific share of funds would also be contributed by the states. The states are not in position to contribute their share of funds, that is why several projects are pending in the state of Punjab. Presently, Mohali-Chandigarh

Rail Line project is pending for the same reason. Therefore, I urge upon the

Government to have a comprehensive re-look at the Centre-State relations and the taxation regime in this country.

KUNWAR HARIBANSH SINGH: Our country has benefitted a lot from

GST. The total tax in the housing sector was at 5.25 per previously, which is 12 percent at present. I would urge upon the Government that it should not be more than 8 percent. Petroleum products should also be brought under GST. We should give concessions to the farmers in the country. We need to do a lot for the farmers, which could not been done so far.

SHRI RAJESH RANJAN: A lot is being discussed about one GST but nothing is being discussed about health and education. The Government has said nothing about how to compensate Bihar which is bound to incur the loss of

Rs.1000 crore due to it. Now only that even farmers have to pay much for petrol, diesel, seeds and fertilizers due to this GST. Besides, I would like to urge the

Government to slash the slabs of GST along with taking measures to bring down the tax on education. SHRI RAVINDRA KUMAR RAY: Such an effort is being made to turn around the economy of the country in the post Independence era of India. The

GST has been framed to place the economy on the growth trajectory. All the taxes prevalent in the country have been merged into the contour of the GST.

Unfortunately, the Bill which is intended to bring about transparency and uprightness is being opposed. I would like to say that it will bring impetus to growth process of the country.

SHRI KAUSHALENDRA KUMAR: The GST (Amendment) Bill, 2018 has been brought in to bring down the rates of GST on certain commodities. This move was necessary to be taken to provide relief to the common people from tax.

It will also remove the difficulties being faced by the business community in filing their returns. Moreover, the ceiling of composite scheme has been increased from

Rs.1 crore to Rs.1.5 crore to the benefit of the business community. Now, the traders having annual turnover less than Rs.30 lakh need not be registered under

GST. If a provision for quarterly return is made for MSME sector then it will flourish to a great extent.

SHRIMATI APARUPA PODDAR: The Bills that are moved by the hon.

Minister intend to address all the problems that are experienced by the common people of this country. But, I fail to understand as to why there is no GST in petrol, electricity and liquor. The GST has proved to be a great disaster, and has affected the normal transaction in trade and commerce throughout the country.

Moreover, my state government is not getting adequate compensation as yet as was declared by the Central Government at the time of introduction of the GST. The

Central Government should continue to work in close coordination with the States and comes up with a clear laid out roadmap.

SHRI PIYUSH GOEL replying said: we, in this august House, are making very significant changes to various GST laws, procedures and policies which will have a very far-reaching impact on the economic story of India. The GST was brought to get rid of multiple tax. I believe that the GST has given a clear cut message for strengthening our federal structure. The GST is the collective achievement of all. This is also proving a point that both Central and State

Governments can work together. Tax rate has been reduced on almost 400 items and 68 services. We are empowering 125 crore Indians through a good and simple tax. In no other major country of the world, such a pivotal change has been made in the tax structure. Based on our experience from time to time, we will make changes in the GST tax regime and we have the courage to do it. The GST council has almost solved all the grievances relating to the textile sector. There was tax on the textile sector in the past also but that tax was not visible to the consumers. The excise duty used to be charged on the looms at their production stage. In fact, there was more tax earlier than it is now. With 5% tax on the textile from August 1 and provision for input tax credit refund will give necessary relief to the textile sector. The textile items will become cheaper. We have studied the indirect tax collection of different States during the last three years. As many as 22 States will be benefitted by the 14% guaranteed growth compensation to these States. There is annual growth in the collection of indirect taxes in several States. But we decided to ensure 14% guaranteed growth compensation to the States so as to create consensus for the implementation of GST in the whole country. Saying that reduced rates will bring reduction in revenue collection is not right. We believe that increasing the revenue is not the sole purpose of the Government, we care for the consumers also. We are trying to promote an honest regime which will have lower taxes and people will join it voluntarily. I firmly believe that our tax collection will not fall. I would, therefore, once again request all the hon.

Members to pass these amendments with consensus and send them to the States.

All the Bills were passed.

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THE NATIONAL COMMISSION FOR BACKWARD CLASSES (REPEAL)

BILL, 2017

(Amendments made by Rajya Sabha)

THE MINISTER OF SOCIAL JUSTICE AND EMPOWERMENT

(SHRI THAAWAR CHAND GEHLOT): moved that the following amendments made by Rajya Sabha in the Bill to repeal the National Commission for Backward

Classes Act, 1993 be taken into consideration.

The motion was adopted and the amendments were agreed to.

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THE BANNING OF UNREGULATED DEPOSIT SCHEMES BILL, 2018.

THE MINISTER OF STATE IN THE MINISTRY OF FINANCE

(SHRI SHIV PRATAP SHUKLA): moved that the Bill to provide for a comprehensive mechanism to ban the unregulated deposit schemes and to protect the interest of depositors and for matters connected therewith or incidental thereto, be taken into consideration.

SHRI NISHIKANT DUBEY: The proposed Bill intends to check the Ponzi schemes and the fraud of the money of poor in them. So far there was no regulation on the Ponzi schemes. The poor people residing in eastern India including West Bengal, Jharkhand, Bihar, Odisha and entire North East are suffering in this regard. Certain issues relates to States this Bill needs comprehensive debate and discussion. I would, therefore, request that this Bill may be referred to the Standing Committee.

HON'BLE DEPUTY SPEAKER: The House agrees to refer this Bill to the

Standing Committee.

The Bill was referred to the Standing Committee.

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THE REPRESENTATION OF THE PEOPLE (AMENDMENT) BILL, 2017

THE MINISTER OF LAW AND JUSTICE AND MINISTER OF

ELECTRONICS AND INFORMATION TECHNOLOGY (SHRI RAVI

SHANKAR PRASAD): moving the motion for consideration of the Bill, said: NRIs are interested in the democratic polity of our country and they want to participate in it. We are only giving them the right to vote by proxy. After the amendment, the NRIs will not need come to vote. They will be allowed to vote by proxy. Rules shall authorise as to under what conditions a proxy will vote. This is the only limited thing that we are trying to bring in. I seek your kind indulgence for the consideration and passing of the Bill.

SHRI R. GOPALAKRISHNAN initiating said: This Bill seeks to amend the Representation of the People Act, 1950 and the Representation of the People

Act, 1951 to allow proxy voting to NRIs. The 1951 Act provides for the wife of a person to vote as proxy. This Bill replaces the term 'wife' with 'spouse'. The

Election Commission had made their physical presence mandatory to cast their votes. Due to this, the NRIs ignored the call of the Election Commission to enrol their names in the voters' list online. Very few travelled to India to exercise their franchise. Some NRIs have apprehension that the facility could be misused and the proxies could cast their votes against their preference. There are questions about the need for proxy voting in the technologically advanced era. The technology is now available to make foolproof online voting. Instead of this, voting for NRIs through Indian Embassies and Consulates will be safer and apt.

The move to grant proxy voting rights to overseas electors assumes a significant important and it is also desirable to provide equal opportunities for all political parties and leaders in getting the confidence of the NRI voters.

SHRI RAJIV PRATAP RUDY: Today we are going to take a decision so that 33 million Indians living abroad will be able to cast their vote in India. This right was already there but they had to visit India. According to an article published in the daily 'The Hindu', there are about 33 crore migrants in India who go from one State to another to earn their livelihood. A large number of people from Bihar live in Maharashtra and in Mumbai. I am a Member from Chapra and a number of villages are lying empty in my district. Anyone getting slightly richer proceeds to the cities. They have their vote not only in the village but in the city also. During elections in the village, we search for our voters in the village. We see that there are 900 voters as per booth data but hardly 200 votes are cast in the village. On the lines of postal ballot, if my voter is living somewhere else and if their number is more than 100 at any particular place then they should get the facility to cast their vote there itself.

DR. MAMTAZ SANGHAMITA: We are creating one more irregularity by bringing in this provision of proxy vote in this Act. In the event of a proxy vote, one vote should be cast by two people, one is the original person whose name the vote is being cast and the other one should be the person who is giving proxy on his behalf. So, it is very difficult to make it fool-proof. Similarly, the electronic voting system is also not fool-proof with so much of cyber fraud being committed.

So, the Government should think twice or more times before they think of implementing the provisions of this Bill. SHRI ANANDRAO ADSUL: This is about proxy voting on the part of

Non Resident Indian. Our Constitution says “One Citizen, One Vote”. In the face of election, there is a different atmosphere. We still have a photographic memory of the election conducted in the year 2014. At that time, an encouraging atmosphere was prevalent across the country. People from every section including saints, sages, children and the veteran were partake of it. The milieu mothers a wave. It is a good move to confer the right to vote even on those who are not currently residing in the country and are settled abroad. I support this Bill.

SHRI KALIKESH N. SINGH DEO: We all agree that NRIs still remain

Indians and should have a participatory nature of involvement in the democratic functioning of the country. Our democracy functions on one-vote-one-person system. Does the Election Commission have the power to monitor elections outside India? It is not just a simple amendment. It strikes at the basic foundation of democracy and the Constitution of India. We are talking about a proxy voting system. How do you ensure that the proxy will vote as per the intent of the person who has given the proxy? Under the Constitution, each person has one vote. However, in this case, if I am the proxy of my spouse, I will vote for myself and I will vote for her also which violates section 128 of Representation of the

People Act, 1951. Here, the secrecy is gone because I have told my husband or wife about it. It also violates section 39 of the Conduct of Election Rules, 1961.

Sometimes people are influenced, coerced or even paid money or given gifts to buy votes. How will the Election Commission monitor that if they are not in India? In the last five years, the hon. Prime Minister has visited a large number of countries and held mega rallies of the Indian diaspora there at the cost of the

Government. However, the Regional Parties neither have the power, nor the money or the outreach of the Ministry of External Affairs or the embassies there.

Is that fair? Should one political party enjoy the benefits of having all the embassies work for them continuously for five years leaving aside all other political parties at a disadvantage. With so many questions left unanswered, unless the hon. Minister answers them satisfactorily, I would stand to oppose the Bill.

SHRI JAYADEV GALLA: This Bill is a very important Bill. It is very close to my heart, especially because I was also an NRI and lived in USA for 25 years. During that time, as an Indian citizen, I was not able to participate in the political process in America and because this provision was not there, I was not able to participate in the political process in India either. So, for 25 years, I felt like I was not a part of any country. So, it really brings a lot of cheer to all the

Indian citizens living abroad. 'Appointing a proxy' sounds like a very complicated process and in today's technological , why do we need to have a physical proxy in order to cast our vote? Many countries around the world have already started e- voting. I think it is high time that we look at it and undertake it as a pilot project for overseas Indians. Eventually, this system can be offered to all our citizens even in India. We bring in technology to avoid corruption in many areas. Why can we not bring in technology in voting? The proxy is gender neutral. It is a welcome step and I congratulate the Minister for that. There are about 16 million NRIs in the world. It is not a very large number when you look at our electorate.

And they cannot make a very significant impact just by voting. But the connectivity that you give them to the country is important. The brain-drain, that we see happening, has to be turned into a brain-gain. Dual citizenship should also be looked at. I support this Bill and urge the Minister to look at taking the next step of dual citizenship.

SHRI KONDA VISHWESHWAR REDDY: The principle behind this Bill is very correct. NRIs need a national identity and this Bill allows them to do it.

NRIs need an opportunity to vote. I think the proxies may not represent people correctly, they can misrepresent. 'The Representation of the People Act' will lead the proxies, who can potentially mislead. So, one of the solutions is that it cannot be any proxy, a proxy has to be a blood relative. So, a 'proxy' can be further defined. It need not be any proxy anywhere. Earlier, when I had to apply for visas, I actually had to go to the Embassy or the Consulate to get the visa. Now, I can go to a local agency in Hyderabad and put my fingerprints. If that can happen, why can the technology not be used to provide an e-voting for these NRIs?

SHRI MOHAMMAD SALIM: I think, we are taking a historic decision in haste, which we can avoid. When there is a loot of vote, that is called proxy vote.

You are making such provisions. We are not in the opposition to provide voting rights to NRIs. NRIs are not only in one nation, they are scattered in different countries. This will not be easy to organize them and convince them to vote through voter list. You can use technology. Why do you not link this to electoral reforms. You should be transparent. Why do you not refer this Bill to Standing

Committee, let it be discussed there. You are not thinking about Indian citizens and their rights. I think this is harmful for us and also very challenging for our democracy.

SHRI DHARAM VIRA GANDHI: I stand for voting rights of our NRI friends who have strong attachment with their motherland and they are in quite a big number. There are about 1.6 million people living in different parts of the world. So, I do not find any reason to oppose this Bill but the word 'proxy voting' is ridiculous. I have my first objection with the word 'proxy' which is the main body of the Bill. It violates the spirit of the People's Representation Act. Some objections were raised that the NRI's vote will be bought. I do not agree with this.

E-voting will be the ideal alternative or an ideal solution for allowing voting to our

NRI friends.

SHRI PREM SINGH CHANDUMAJRA: This is a very important and historic Bill. It is a very good move leading to the NRI’s contribution to the country as well as spurt in their interest. As many as 40 per cent people hailing from my State, Punjab have settled down abroad. Practically speaking even those who are disabled, visually handicapped or otherwise do exercise their franchise through proxy voting. In so far as internal migration is concerned, I would like to submit that one should be entitled to vote at the place which one is a bonafide resident of. All I want to say is that it is a good Bill enabling NRI’s affiliation to the nation. SHRI DUSHYANT CHAUTALA: I must ask the hon. Minister when the

Government talks of entitling those to cast proxy votes who neither have any contribution in services to the nation, nor do they pay any taxes and continue functioning in the foreign country, all the same, they are the citizens of the country.

Today, the Government talks of NRIs. I wonder what procedure shall be charted out in respect of 3.3 crore NRIs. This is an amendment to equip the NRIs with a right to vote but the moot point is who will carry out their verification. You must come forward with a rectification on this issue. Strenuous efforts are being made to bring in massive legislative manipulation to confer the right to vote on a huge chunk of population. This must be referred to a Committee for a comprehensive evaluation.

KUNWAR HARIBANSH SINGH: I support this Bill. Our Foreign

Reserve improves when we receive money from Non Indian Residents in the form of Dollar and Ponds. They should be given right to vote as they are sons of the soil.

This process should be fairly transparent in order to ensure free and fair voting.

SHRI RAVI SHANKAR PRASAD replying said: As per Ministry of

External Affairs sources there are approximately three crore ten lakh NRIs and we should not deride the contribution of the Indian NRIs. We need to recognize that.

All the concerns which have been raised by the hon. Members are matters of rules.

For that we have got the Conduct of Elections Rules, 1961. The entire procedure is there, regarding nomination, preparation of voting lists and counting process etc.

The Act which we are contemplating today gives the enabling support under Section 20A, under which any NRI can put one of his relatives, one of his close friends as a proxy. Surely, when the rules are framed, Election Commission will take into account whether the mandate of the main NRI voter has been flouted, and then there is a provision for cancellation of that vote also. All these are matters to be considered when the appropriate amendment shall be made in the Conduct of

Election Rules, 1961 or any other rules which the Election Commission may consider. Similarly, Commission is already working on the issue of migrant workers. They have formed a Committee. They have suggested for the establishment of absentee voting centres during elections. I want to assure this

House that our sympathies are with the migrant workers. They should be given the

Right to vote in the total architecture of voting procedure including being in the voting list. As of now, migrant workers can register in their original place or in the new place of their work also, if they are ordinary resident in the meaning of the law. Now I come to the e-voting part. We found that e-voting may not be completely free from difficulty. The first that thing that will happen is whom you have voted will come online. It will become a violation of the secrecy of voting.

As of now, we need further technology to make e-voting a secret process. Second is the safety issue. In India, with a population of 130 crore and 80 crore plus voters, the question of allowing e-voting will require a lot of hard work and security issues that we will have to look into. So, I have noted all the concerns and while framing the Rule, I want to assure, that these concerns shall be flagged into and all the security architecture will be there. With this Bill, we are providing a big opportunity to NRIs having immense love and pride for their country. We are giving them an important space in the Indian Parliamentary System.

The Bill, as amended, was passed.

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SNEHLATA SHRIVASTAVA Secretary General

English and Hindi versions of Synopsis of Debates are also available at http://loksabha.nic.in.