On Tuesday, Finance Minister Arun Jaitley assured that the Government would take necessary steps to ensure easy GST compliance. However, the Finance Minister denied even a minuscule possibility of implementing a single tax rate for GST.
While addressing the gathered officials and delegates of the India-Korea business summit, Mr Arun Jaitley further asserted that India is a country of economic inequality and one single tax rate for GST is not a viable option for such a diverse economic market. The number of willing tax players in the country is still a very small fraction of the total population.
The Finance Minister informed that the 28% tax slab has been reduced and there are plans to reduce it further. Last year, about 178 items were shifted from the 28% GST slab to lower slabs.
Though construction items like cement and paint are still part of the 28% GST Tax Slab. These items could be moved to other slabs in upcoming days. The two standard rates could even be mixed together in the long run.
The Finance Minister further envisioned new growth trajectories for India catapulted mainly by the increasing pool of taxpayers post-GST. Stressing on the compliance burden associated with GST, Mr Jaitley promised smoother and easier days ahead for taxpayers. Speaking of the recurring loan frauds and defaulters, the Finance Minister revealed that all banks have been directed to review the non-performing loans worth more than Rs 50 crores. The Policy changes done by the Central Government coupled with the favourable global environment has the potential to drive India towards a 7-8% GDP growth rate. He further added that India has been able to associate its economic decisions with political acceptance and now people want rapid growth along with reform in the country.
The Finance Minister further stated that India is now determined to eliminate administrative traps as well as loopholes and in the process become a global centre for investment and innovation.
