GST implementation date: Revenue Secretary Hasmukh Adhia on Tuesday said that the Goods and Service Tax (GST) will be implemented as per the plan on July 1, 2017 news agency ANI reported today. However, Adhia didn’t rule out the scope for rationalisation of tax rates fixed on various goods and services under the GST.
“One thing we would agree is that there is a scope for rationalisation of tax rates on various goods and services,” Adhia was quoted as saying by the Press Trust of India. Adhia’s comments come a day after Central Board of Excise and Customs Chairperson Vanaja Sarna had said that GST Council could revise rates if there is any justification for reconsideration. There have been a lot of demands from various industries and businesses, including traders, FMCG and automobiles to revise GST rates.
Relying on the concerns by representatives of food processing sector, Adhia said a decision on the rates of foodgrains, especially wheat and rice, would be taken at the June 3 meeting. “It was already mentioned by (Finance Minister Arun) Mr Jaitley that this is one issue which is still pending before the GST Council, and it will take a decision. We understand the food processing industry needs to be encouraged,” Adhia said. He, however argued, that if these items were kept in the exempted category, the food processing industry will be affected negatively.
The Revenue Secratary also dismissed the fear of loans getting costlier due to implementation of GST. “There have been some concerns raised in the financial service sector that loans and all of these will become costlier, no way (it is going to be so),” he said.
“All people in financial services will know, we are not charging service taxes in deposits as well as loans, but taxes on other services. Loans are not going to become costlier. That is a misplaced fear, because of lack of understanding,” he added. Adhia expressed hope that GST may push India’s GDP up by more than 4 per cent. He said that simplicity and predictability of the new indirect tax regime will encourage people to be tax compliant.
“Economists have argued that India’s GDP may go up by more than 4 per cent because of GST – that is the kind of potential it has,” he said. “Why will the GDP go up? It is because businesses require simplicity, predictability of tax regime. These are the things which are going to be fulfilled by GST,” he added.