Assembly passes GST amendment Bill amid heated exchange between CM, Atishi

The Delhi Legislative Assembly on Friday passed the Delhi Goods and Services Tax (Amendment) Bill, 2025, after a stormy debate between Chief Minister Rekha Gupta and her predecessor Atishi, marked by interruptions and the marshalling out of AAP MLA Anil Jha.

Atishi, leading the Opposition’s charge, called for a detailed discussion on the Bill, warning that “traders are worried about GST”. Speaker Vijender Gupta countered that when the AAP was in power, it “never allowed discussion on it”. BJP MLA and former AAP minister Kailash Gahlot described the legislative process as “a mere formality”, prompting Atishi to respond, “Calling it a mere formality is an insult to the House.”

Despite the interruptions, the House cleared the legislation. The CM said the reforms would “simplify tax administration, enhance compliance and provide relief to businesses and taxpayers”. She added, “This is a step towards simplification, transparency and justice for taxpayers. Our aim is to promote business confidence while maintaining effective revenue governance.”

The amendments were introduced in two legislative packages. The first, comprising 45 changes approved in GST Council meetings between July 2023 and June 2024, focused on extending Input Tax Credit (ITC) timelines, simplifying registration and return filing, setting up the GST Appellate Tribunal and introducing an amnesty scheme for relief on interest and penalties. The second, passed in December 2024, contained 14 provisions to strengthen enforcement and procedural clarity, including penalties for non-compliance in track-and-trace systems, clearer rules on ISD credit distribution, treatment of municipal funds and streamlined appeals.

The reforms reduce the pre-deposit for appeals from 10 per cent to 7 per cent, extend ITC claim periods, improve dispute resolution and mandate machine tracking in sectors like gutkha manufacturing through unique identifiers on each packet. “Earlier, companies could not be traced for how much gutkha was being produced or sold. Now, with machine tracking and unique identifiers, the government will ensure full transparency,” the CM said.

She noted that the GST Amnesty Scheme alone generated Rs 218 crore for Delhi by March 31, 2025.

During the debate, Gupta criticised former Finance Minister Atishi for questioning amendments passed in meetings she allegedly did not attend. “She is now questioning reforms that she neither debated nor helped shape,” Gupta said, adding that Atishi missed the crucial 55th GST Council Meeting and several others.

The CM highlighted Delhi’s strong tax performance under her leadership, with GST and VAT collections reaching Rs 15,535 crore in the first five months of FY 2024-25, compared to Rs 14,500 crore in the same period last year — a 7 per cent rise.

Addressing misconceptions about Delhi’s fiscal role, Gupta clarified that as a Union Territory, the Delhi Government handles GST, VAT, excise and stamp duty, while the Centre manages income tax, customs, corporate taxes and funds major expenses, from Delhi Police salaries to Metro operations. “The Centre ensures Delhi runs smoothly, regardless of politics,” she said, thanking the Union Government for its support.