Adi Godrej, Chairman, Godrej Group on Wednesday said that realty will pick up post implementation of Goods and services tax (GST). “GST can add 1.5-2% to GDP,” he told CNBC TV18. He also said that he expects strong performance in the January-March quarter. Recently the veteran industrialist made a strong pitch for lower rates of taxes under GST and praised the Narendra Modi government for being reform-oriented and bringing down corruption and crony capitalism.
“They are clearly free enterprise-oriented, very clearly they are reform-oriented and, at last, the GST Constitutional Amendment Bill passed that is to mind is the single most important reform after 1991. So, I think they have done a good job. And they have improved ease of doing business, and we should continue strongly on that path”, he said. He also said that GST will add to the GDP growth of the country and boost confidence of India Inc.
He also said that once the GST comes in, the generation of black money should come down tremendously since there is no scope for evading indirect taxes. “Even direct tax evasion is largely because of indirect tax evasion. This measure will have a cumulative effect, and overall, corruption and black money should come down,” he said.
Asked if there are areas where the Modi government has “fallen short”, he said: “That’s not the issue, nothing is perfect. Because of political reasons, somethings may not be done. But Now, lot of the things have been done. I think they have taken good steps. Overall, I compliment them.”
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“Corruption has come down quite a lot, especially at the higher level, and I think crony capitalism has come down a lot. And that’s very good. I think passing of the constitutional amendment bill for GST is a very good achievement,” Godrej said in response to a query.