Finance Minister Nirmala Sitharaman said on Monday that the Goods and Services Tax (GST) system is progressing from unpredictability to assurance regarding certain matters. This statement aimed to alleviate concerns of global firms regarding “tax certainty,” particularly in light of recent tax demands and investigations conducted by revenue authorities.
According to the Finance Minister, the GST Council, a constitutional body, has significantly contributed to establishing the “One Nation, One Tax” principle effectively. However, she acknowledged that there have been initial challenges.
There are still some unresolved issues from before the implementation of GST in 2017. Some of these matters are pending in the courts, while others are not, and efforts are being made to resolve them. The Finance Minister emphasized that tax authorities are mindful of adhering to designated timelines, which leads to the issuance of GST notices.
She further indicated that the responses received to these notices are duly considered.
Therefore, although certain uncertainties remain, progress is being made in transitioning from uncertainty to certainty. It may appear uncertain because GST is already operational, but certain aspects are currently being addressed.
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These remarks were made in response to a question posed by a person about the assurance that can be provided to the international community regarding tax certainty and the proposed implementation of such measures in India.
