As the nation is very well aware of Union cabinet approving four GST legislation bills and being in the queue for to be presented in the parliament. In the current session of the budget, the finance minister Arun Jaitley expressed his views on the GST effect and positively said that the upcoming Goods and service tax will definitely collaborate the market as a global single market and will also reduce the prices of commodities making tax evasions difficult in the sidelines.
The finance minister was present at the 23rd Conference of the Commonwealth Auditor General and said that India being a nontax compliant nation which is indulged in tax evasion activities and for the curbing of these activities, the government had to take the decision to ban the higher denomination notes. The decision of the government has certainly made some difference and will also increase the growth by 7-8 percent by large making the Indian economy the world’s fastest growing economy. Still, the challenges are stuck in the global oil pricing, state-owned banks financial status and private sector investment strategy.
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Now, the minister is assured that upcoming GST will tuck the tax evasion activities with the help of IT structure being framed and making a seamless transfer of goods and service throughout the nation. Mr. Arun Jaitley added that “The biggest taxation reform what we are trying to implement from July 1 is Goods and Services Tax. It will increase the volume of taxation, there is no tax on tax and therefore makes goods, commodities and services little cheaper and far more convenient, The laws which enable this (GST) are now before Parliament which hopefully should get cleared and once they do get cleared then by the middle of this year we hope to see the implementation as far as this law is concerned.”
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He said that India being a noncompliance nation must start adhering to the laws and must help in building the nation. As he added, “Therefore, one of the efforts of the state has been how to bring non-compliance to an end. Once the GST is introduced it will be a great check as far as evasion is concerned, Cash component of Indian economy was exorbitantly high about 12.2 percent of GDP and of this, 86 per cent was high denominational currency and therefore the tendency to deal excessively in cash did exist and this created its own challenges for economy.”
