Skip to main content

GST produced a big positive effect on economy, says Modi


Prime Minister Narendra Modi says implementation of the Goods and Services Tax (GST) has produced “a big positive effect” on India’s economy and instilled “a new sense of confidence” in the country.
During his ‘Mann Ki Baat’ monthly radio address, he expressed satisfaction with the implementation of the new tax regime in the country, saying the “lofty dream” of ‘One Nation–One Tax’ has “finally” been fulfilled.
“It has been one month since GST was implemented and its benefits can be seen already. I feel very happy and satisfied when a poor person writes to say how because of GST prices of various items essential for him have come down, and commodities have become cheaper,” he said.
One overriding priority for “every government” has been to ensure that there is no burden on the plate of the poor on account of GST, he said.
Using the GST app, one can know as to how much an item cost before the rollout of the GST and how much it is now post-GST, he said.
“This is a historic achievement. And this is not just a tax reform; it is a new economic order that will strengthen a new culture of honesty. In a way, it is also a campaign for social reformation,” he said.
While doing business has become “so much easier” in India, the most important of all is that the trust of customers for the traders is increasing, he added.
Prime Minister also highlighted the GST effect on pollution control.
“Highways have become clutter-free. Pollution levels have come down with the increased speeds of trucks. Goods are also being transported much faster,” he said.
The prime minister hoped that “Pundits” of economics, management and technology would “some day” undertake a study on India’s GST experiment “as a model for the world”.
The Economic Times, New Delhi, 31st July 2017

Comments

Popular posts from this blog

Shrinking footprints of foreign banks in India

Shrinking footprints of foreign banks in India Foreign banks are increasingly shrinking their presence in India and are also becoming more conservative than private and public sector counterparts. While many of them have sold some of their businesses in India as part of their global strategy, some are trying to keep their core expertise intact. Others are branching out to newer areas to continue business momentum.For example, HSBC and Barclays Bank in India have got out of the retail business, whereas corporate-focused Standard Chartered Bank is now trying to increase its focus on retail “Building a retail franchise is a huge exercise and takes a long time. You cannot afford to lose it,” said Shashank Joshi, Bank of Tokyo-Mitsubishi UFJ’s India head.According to the Reserve Bank of India (RBI) data, foreign banks’ combined loan book shrunk nearly 10 per cent from Rs 3.78 trillion in fiscal 2015-16 to Rs 3.42 trillion last financial year. The banking industry, which includes foreign banks…

RBI rushes in to prop up falling rupee

RBI rushes in to prop up falling rupee India’s central bank reportedly intervened in the currency markets on Monday to prevent a further slide in the local unit, which breached the 67 mark to a dollar for the first time in 15 months amid a widening trade gap and runaway import bills fuelled by high crude-oil prices. Some state-owned banks were seen selling dollars aggressively, interventions that market dealers attributed to the central bank’s strategy to stem the decline of the Indian rupee against the US currency. The rupee is the worst performing among a dozen Asian monetary units in the past three months. It lost 4.25 per cent to the dollar during the period, show data from Bloomberg. On Monday, the Reserve Bank of India (RBI) is said to have sold about Rs 800 million collectively on the spot and exchange traded futures markets, dealers said. An email sent to RBI remained unanswered until the publication of this report. The currency market has seen such a strong central bank interven…

GST Refund of Rs 20,000 Cr Pending: Exporters’ Body

GST Refund of Rs  20,000 Cr Pending: Exporters’ Body Refund of over Rs 20,000 crore on account of Goods and Services Tax (GST) is pending with the government with more than half the amount stuck as input tax credit, Federation of Indian Export Organisations said on Tuesday. While claims over Rs7,000 crore were cleared in March, the amount was Rs 1,000 crore in April.However, after exporters’ request, the GST council and tax department are organizing a second phase of Special Refund Fortnight starting May 31, which will enable exporters to draw their refunds at a speedy pace. Many exporters have been unable to file the refund of input tax credit due to technical glitches, exports and claim happened in different months. The major challenge lies on ITC refund especially because the process is partly electronic and partly manual which is cumbersome and add to the transaction cost, the exporters’ body said. On IGST, refunds are getting delayed due to airline and shipping companies not submitt…