Wednesday, March 22, 2017

Jaitley hopes GST roll out from July 1 to make goods cheaper | Universal Links

Posted by Babji Shaik  |  at  3:14 PM No comments

GST roll out from July 1 to make goods cheaper: Jaitley


A new tax on goods and services nationwide (GST) will be launched from July 1 to create one of the world's largest individual markets, make commodities cheaper and make tax evasion difficult, he said. Today the Minister of Finance, Arun Jaitley. Jaitley said that India has "hugely" a non-tax-compliant society and the government banned higher denomination bills to curb the tendency of people to negotiate cash that lead to tax evasion as well as terrorism financing.

He said the government's reform measures will help India to grow 7-8 percent and retain the label of the world's fastest growing economy, but the challenges remain in world price volatility Of oil, Property of banks.
Regarding GST, he said the new indirect tax regime will ensure the seamless transfer of goods and services and with a stronger information technology backbone will make it difficult to evade.
Despite being a political entity, India today is not a unique economic entity, as there are multiple layers of taxes that make goods more expensive. The GST, proposed in 2006, will replace 17 state and central taxes. "The biggest tax reform we are trying to implement as of July 1 is the Tax on Goods and Services ... It will increase the volume of taxes, there will be taxes on taxes and therefore makes the goods, products Basic and services are cheaper and much more convenient, "said Jaitley.

The Union Cabinet this week approved four supplementary GST legislation to be presented to Parliament in the current budget session. "The laws that allow this (GST) are now before Parliament, which we hope will be cleared up and once clarified, we expect to see implementation in this mid-year," Jaitley said. In terms of compliance with taxes, he said that India occupies a fairly high place as a non-conforming state. "So one of the state's efforts has been how to end the breach. Once the GST is introduced, it will be a great deal of control over evasion," he said, adding that the government has amended the Direct Tax Act Through the introduction of currencies into cash.
Jaitley yesterday in Parliament introduced an amendment to the Finance Act 2017 proposes to ban cash transactions over Rs 2 lakh. "The cash component of the Indian economy was exorbitantly high, about 12.2 percent of GDP and of this, 86 percent was high denomination currency and therefore the tendency to deal excessively in cash existed and this created Their own challenges to the economy. " The money facilitated crime, corruption, encouraged tax defaults and was a facilitator to finance terrorism and insurgency, he said, while defending the November 8 decision to demonetize 500 and 1,000 rupees.

"(With Demonetization) The anonymity that joined this high level of cash operating in the market that anonymity disappeared as it had to be deposited in the bank." This has also boosted the trend towards digitalization of the economy, (it) acting as a disincentive to the continuation. To cope with a shadow or parallel economy and lead to more informal integration with the formal economy, "said Jaitley said The size of India's GDP in the near future will be larger, the size of the formal economy will increase and be cleaner.As for growth, Jaitley said India would remain one of the world's fastest growing economies.

"For the past three years we have been the fastest growing economy, we will continue to be in that phase. I think that for India achieving the 7-8 percent growth rate is reasonably plausible. He said.
Jaitley said the government is trying to address the issues affecting public sector banks and also increase private investment.

"We are hopeful that in the coming quarters, you will probably see a better result in regards to those areas," he said, adding that oil prices remain an uncertainty for India. The gross NPAs of public sector banks have increased from Rs 5.02 lakh crore in late March 2016 to Rs 6.06 lakh crore in December 2016.

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