FM pitches India story with promise of action
Even as Chidambaram told investors in Hong Kong that the General Anti-Avoidance Rules or GAAR that unnerved investors earlier in the year had been efficiently handled (“the ghost of GAAR has been tamed”), key policymakers back home have made progress in indirect tax reforms. FE has learned that two committees led by revenue secretary Sumit Bose have given separate reports about the structure of the proposed GST and issues related to compensation to state governments to an empowered panel of state finance ministers. “The reports submitted on Tuesday, however, have left the issue of a GST rate to the empowered panel to decide for itself,” said a source.
The FM said fiscal prudence will be a key part of his budget and pledged to deepen economic policy overhaul by implementing GST. For the time being, the focus is on expenditure control, but going forward, expanding tax base would be key to fiscal correction.
“It’s absolutely important to signal to the world that we are on the path of fiscal consolidation,” overseas reports said quoting Chidambaram. Approval for GST
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