GST Update on GST Bill-Finance Or Money?

GST bills have been passed by Rajya Sabha. But passage of GST bills in Rajya Sabha does not any effect on fate of these bills. Since these bills were introduced as Money bill, it has become law as soon as it is passed in Lok Sabha. Now, it is most important to know about money bill or finance bill.

Talking about Money Bills, Artilce 110(1) of the Constitution gives the provisions relating to money bill. It says that a Bill is deemed as Money Bill if it contains only provision dealing with all or any of the following matters:-
(a) the imposition, abolition, remission, alteration or regulation of any tax;
(b) regulation of borrowing by the government;
(c) custody of the Consolidated Fund or Contingency Fund of India, and payments into or withdrawals from these Funds;
(d) appropriation of moneys out of the Consolidated Fund of India;
(e) declaring of any expenditure to be expenditure charged on the Consolidated Fund of India or the increasing of the amount of any such expenditure;
(f) receipt of money on account of the Consolidated Fund of India or the public account of India or the custody or issue of such money or the audit of the accounts of the Union or of a State; or
(g) any matter incidental to any of the matters specified in sub-clauses (a) to (f).

The speaker of House of people can decide whether a bill can be introduced as money bill or not? This power given to speaker under Article 110(3) is absolute and nobody even the Court of law can challenge the same. The money bill can be introduced only in Lok Sabha. Money bills passed by the Lok Sabha are sent to the Rajya Sabha. The Rajya Sabha can not amend money bills but can recommend amendments. These amendments will be put before the Lokh Sabha who may or may not accept the same. This shows that Lok Sabha has upper hand over Rajya Sabha in case of money bills. All other bills are to be passed by both the houses. If the money bill is not returned by Rajya Sabha within 14 days then it will be deemed to be passed by Rajya Sabha as per Article 109(5).

A financial bill can be of two categories. Finance bill under category I may have provisions in addition to provisions contained in money bill under Article 110. Thus, it has to be passed by both houses of parliament.

A Financial Bill under category II has provisions relating to expenditure from consolidated fund of India but does not have anything mentioned in Article 110. This has to be passed both by Lok Sabha and Rajya Sabha but the recommendation of the President is essential for consideration of these bills by both houses.

Since the Congress party has a say in Rajya Sabha, it wanted GST bill to be declared as Finance Bill. As the government desired to pass the bill without major amendments, since it has majority of seats in lower house, it was trying to get GST bills declared as Money Bill.
Now it has been passed by both houses, the president assent has been left. Now, SGST Act is to be passed by all state assemblies. Thereafter, it can be implemented from July 1, 2017.

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GST Update on GST Bill-Finance Or Money?

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