Prime Minister Narendra Modi while addressing the Lok Sabha on Monday said that, GST will 'root out black money', as there will be a push towards 'transparent billing'.
Prime Minister Narendra Modi while addressing the Lok Sabha on Monday said that, GST will ‘root out black money’, as there will be a push towards ‘transparent billing’. Modi also said that GST will end corruption in India as system checks will “show up any attempt at tax-evasion”. Finance Minister Arun Jaitley while moving the modified Bill in the Lok Sabha said that GST will curb tax evasion and boost the ease of doing business by ‘engendering a common market’ all over India. Although being an indirect tax, GST’s implementation will effect direct taxes. It will help widen the tax base which will eventually lead to increased taxes collections.
There are tax filers who do not report every transactions in order to save VAT, Excise etc. But since GST will leave a paper trail which will be under the scanner of Income Tax departments, this will have an impact on the black money generation in the system. Since the states as will as the Centre will be invloved in the ‘dual monitoring’ which is proposed in GST, income tax evasions can be reduced. The maximum tax evasions happen among the real estate sector, but the new structure will improve tax compliance by builders, dealers and investors of properties.
The prime minister said that the legislation’s passage will send the message that ‘consumer is the king’. Lok Sabha took up the amendments for GST on Monday. Earlier in May 6, last year the Bill was passed by the house. Rajya Sabha unanimously passed the GST Bill with amendments to cater to the opposition parties’ concerns, on the August 3, 2016.