Union Finance Minister Arun Jaitley has said that the Goods and Services Tax (GST) will benefit India immensely. The minister told ET Now that India has a very complex indirect tax structure and after the GST Bill is implemented the rules of the game will change. Jaitley said, ”GST will completely change the rules of the game, India will become a single entity, a person won’t pay tax-on-tax, there will be a free flow of goods and services across the country after the GST is implemented”. The Minister added that the streamlining of taxes will help aid GDP growth. The Finance Minister was speaking after the GST Council formalised the rates for several products. The Finance Minister also added that there is no real reason to delay the rollout of the bill.
Jaitley while speaking to CNBC-TV18 said that the objective of the GST is to reduce taxes and to reduce the tax burden on people. The minister told CNBC-TV18 that the government deliberately did not keep a blanket rate on products. The minister said that GST is a real system and not a complex system. He added that the tax rates on various products have been decided to keep the end user in mind, saying that the government has kept food in the zero category.
The minister, while speaking to CNBC-TV18, gave an example of how the tax rates have been simplified by mentioning the shoes and apparel section, the minister said, ”Shoes below Rs 500 and apparel below Rs 1,000 will not be taxed, but instead of having various tax rates for apparel costing different rates we have decided to keep a single tax rate for clothes”.
On demonetisation, the Finance Minister told CNBC-TV18 that a final figure has not been released by the RBI, nearly 7 months after it was implemented, as the central bank has to count each and every currency note, which is taking a lot of time due to the volume of the currency involved.