Will oppose Centre's plan to levy GST on online transactions, research grants: Minister Atishi
New Delhi, Sep 8: Delhi Finance Minister Atishi on Sunday said the AAP government will oppose the Centre's alleged plan to levy GST on payment gateway transactions below Rs 2,000 and research grants.
The GST Council on Monday is expected to deliberate on a host of issues, including taxation of insurance premiums, the Group of Ministers (GoMs) suggestions on rate rationalisation, and a status report on online gaming.
The council is chaired by Union Finance Minister Nirmala Sitharaman and comprises state ministers.
Addressing a press conference, Atishi said the decision to impose GST (goods and services tax) on online transactions below Rs 2,000 would have severe consequences for numerous startups and small businesses across the country.
She stressed the BJP-led central government's plan would place excessive financial strain on the country's entrepreneurial community.
The minister said the Aam Aadmi Party (AAP) dispensation feels that implementing such a tax on smaller transactions will hinder the growth and development of the startup ecosystem and negatively impact the operations of small-scale enterprises.
Atishi said the central government has been continuously saying that it is promoting digital transactions and a cashless economy.
"However, their hypocrisy is evident as the central government is bringing a proposal in the GST Council meeting tomorrow that online transactions below Rs 2,000, which were exempted from GST until now, will now be taxed," she claimed.
"When we buy something online using debit cards, credit cards, or net banking, if our transaction is below Rs 2,000, it is not subject to GST. If the transaction exceeds Rs 2,000, it attracts a GST of 18 per cent on the payment gateway fees," she explained.
This means that small online purchases, made via debit or credit card, will also be taxed. Most of these payments happen through some payment gateway like Razorpay, CCAvenue, or BillDesk, she said.
Atishi said they would also oppose GST on research grants in the meeting.
"No country in the world imposes GST on research grants given to educational institutions because they do not see research as a business, but as an investment in progress of the country," she said.
"All developed countries of the world invest a large part of their GDP in research. But in the last 10 years, under anti-education BJP, the research budget has been reduced from Rs 70,000 crore to Rs 35,000 crore," she said.
She claimed that six educational institutions, including IIT-Delhi and Punjab University, were sent GST notices of Rs 220 crore.
"The government is reducing the research budget and imposing GST on educational institutions if they get research grants from private entities. This is completely wrong and we will demand that research grants given to educational institutions be exempted from GST," she added.
Let the Truth be known. If you read VB and like VB, please be a VB Supporter and Help us deliver the Truth to one and all.
TVK falls short within touching distance; what next to ensure majority
Chennai (PIT): With TVK falling 10 short of a majority, its leader Vijay has the option of forming a minority government in Tamil Nadu without any outside support, analysts said on Tuesday.
Senior political analyst Sumanth Raman told PTI that the TVK is likely to opt to be a minority government with outside support.
"Since it is the single largest party, TVK has the option to go for that. I don't think he (Vijay) will opt for official support from other political party's MLAs", he said.
"If he opts for minority government, the only thing is that, Vijay will have to prove the support once again after six months".
Raman also pointed out that in 2006 when DMK won only 92 seats, the then party president, the late M Karunanidhi formed a minority government with outside support.
In a completely unexpected turn of events in the Tamil Nadu Assembly elections, the TVK has emerged victorious, putting an end to the almost six decade-long dominance of the two major Dravidian parties--DMK and AIADMK.
By clinching victory in its debut electoral contest, the party has elevated its status to that of a recognised political entity. However, the Vijay-led TVK did not secure a mandate large enough to form a government with an absolute majority on its own, requiring another 10 to cross the finish line. Experts have varied opinions.
Specifically, to attain a simple majority, a political party must win at least 118 out of the total 234 constituencies. The TVK, however, secured victory in 108 constituencies. Given that the TVK fell short of the majority mark, what might unfold next?
TVK leader Vijay has won in both constituencies he contested--Perambur in Chennai and Tiruchirappalli East. As per the election commission rule, he will have to resign from one of these seats. TVK sources said that the leader is likely to surrender the Tiruchirappalli assembly seat.
If Vijay does so, the party's total tally of seats will decrease by one. Then it will be 107. Adding to the number games, TVK appointed Speaker of the Assembly will be ineligible to cast a vote during a confidence motion and the party's effective voting strength will be reduced by yet another seat, which comes to 106.
Accordingly, the TVK requires the support of an additional 12 members to demonstrate its majority. As of now, within the DMK alliance, the Congress party has secured five seats, the two Communist parties have won two seats each (totaling four), while the DMDK has secured one seat, the Indian Union Muslim League (IUML) has won two seats and the VCK has secured two seats.
Within the AIADMK alliance, the PMK has grabbed four seats, the BJP has won one seat, and the AMMK has secured one seat. Going by the calculations, if TVK gets the support of other parties within both alliances, it would gain an additional 21 seats.
TVK could potentially secure a total of 129 seats (108 + 21). However, the TVK does not require the support of all those parties, and the backing of just 12 members would suffice.
As Vijay is expected to visit Lok Bhavan on Wednesday (May 6) to meet the governor Rajendra Vishwanath Arlekar to stake claim to form government, the governor is expected to offer the TVK two options.
First, he may summon the TVK chief and instruct him to demonstrate his majority on the floor of the legislative assembly. Alternatively, he might ask Vijay to gather letters of support from "allied" parties and submit them to him.
If the TVK secures support exceeding 118 seats, the governor would invite the party form the government. If TVK fails to garner support from other political parties, it will be denied the opportunity to form the government.
In such a scenario, the governor has the option to invite the DMK, the party holding the second-highest number of seats to form the government.
If DMK too is unable to form a government, the state of Tamil Nadu will come under governor's rule for the subsequent six months. Following this period, fresh legislative Assembly elections will be once again held across all 234 constituencies.
Another political analyst Durai Karuna ruled out that TVK will go for a minority government.
"If he (Vijay) gives an appeal, many political parties including Congress, VCK and left parties will join TVK", he claimed. "In addition, the AIADMK, which has decided to organise MLAs meeting on Wednesday, might also announce that it would support TVK unconditionally".
He said a clear picture on Vijay's decision will emerge in a couple of days.
Tharasu Shyam, political critic, claimed that Congress was "holding talks with Vijay."
"From now on, the DMK must change its approach and this applies equally to the AIADMK," he said in an apparent reference to some reported difference of opinion between allies DMK and Congress over seat-sharing and power-sharing ahead of the April 23 polls.
Incidentally, AICC in-charge for Tamil Nadu, Girish Chodankar, on Tuesday admitted that the Congress party leadership's decision to stick with the DMK alliance went against strong grassroots sentiment favouring the TVK.
"The local leaders, the grassroots level leaders, were suggesting if Rahul Gandhi, who has a large acceptance in Tamil Nadu, joins the campaign with Vijay, it will create a big impact and we can sweep the Tamil Nadu polls, and get somewhere around 180-190 seats," Chodankar told PTI Videos.
