Skip to main content

Single GST rate can't work at the moment; compliance to be made simpler: FM

By
Single GST rate can't work at the moment; compliance to be made simpler: FM
He said that being the reason, the government started with multiple rates and was now moving towards rationalisation Union Finance Minister Arun Jaitley on Tuesday said that India being a "significantly tax non-compliant" country, with wide socio-economic diversities, it cannot have a single GST rate in near future.

However, he said, the government was moving towards rationalisation of the Goods and Services Tax (GST) structure, which would pick up more pace once tax compliance improves."India has been a significantly tax non-compliant country.And therefore, the compliance standards in India have to be first improved."Also, in a society like India where you still have a significant population which is deprived or below the poverty line, a single (GST) rate can't work," Jaitley said at "India-Korea Business Summit" here.

He said that being the reason, the government started with multiple rates and was now moving towards rationalisation."In the first stage of rationalisation process, we are thinning out the 28 per cent bracket. After we have thinned the 28 per cent and are able to improve compliance levels, then the second stage of reform of further consolidating other rates would begin - with two rates merging into one," the Finance Minister said.Inviting delegates from South Korea to invest in India, Jaitley said India would continue to remain among the fastest growing economies in the world.

"India has demonstrated that even in a global environment of adversity, it has the potential to continue to reform, to take difficult decisions and maintain a high trajectory growth," he said.Jaitley added that a seven to eight per cent growth rate was the normal expectation of Indians who believe the actual potential for Indian economy is much higher.

The Business Standard, New Delhi, 28th February 2018

Comments

Post a Comment

Popular posts from this blog

Household debt up, but India still lags emerging-market economies: RBI

By
  Although household debt in India is rising, driven by increased borrowing from the financial sector, it remains lower than in other emerging-market economies (EMEs), the Reserve Bank of India (RBI) said in its Financial Stability Report. It added that non-housing retail loans, largely taken for consumption, accounted for 55 per cent of total household debt.As of December 2024, India’s household debt-to-gross domestic product ratio stood at 41.9 per cent. “...Non-housing retail loans, which are mostly used for consumption purposes, formed 54.9 per cent of total household debt as of March 2025 and 25.7 per cent of disposable income as of March 2024. Moreover, the share of these loans has been growing consistently over the years, and their growth has outpaced that of both housing loans and agriculture and business loans,” the RBI said in its report.Housing loans, by contrast, made up 29 per cent of household debt, and their growth has remained steady. However, disaggregated data sho...
Post a Comment
Read more

External spillovers likely to hit India's financial system: RBI report

By
  While India’s growth remains insulated from global headwinds mainly due to buoyant domestic demand, the domestic financial system could, however, be impacted by external spillovers, the Reserve Bank of India (RBI) said in its half yearly Financial Stability Report published on Monday.Furthermore, the rising global trade disputes and intensifying geopolitical hostilities could negatively impact the domestic growth outlook and reduce the demand for bank credit, which has decelerated sharply. “Moreover, it could also lead to increased risk aversion among investors and further corrections in domestic equity markets, which despite the recent correction, remain at the high end of their historical range,” the report said.It noted that there is some build-up of stress, primarily in financial markets, on account of global spillovers, which is reflected in the marginal rise in the financial system stress indicator, an indicator of the stress level in the financial system, compared to its p...
Post a Comment
Read more

Retail inflation cools to a six-year low of 2.82% in May on moderating food prices

By
  New Delhi: Retail inflation in India cooled to its lowest level in over six years in May, helped by a sharp moderation in food prices, according to provisional government data released Thursday.Consumer Price Index (CPI)-based inflation eased to 2.82% year-on-year, down from 3.16% in April and 4.8% in May last year, data from the Ministry of Statistics and Programme Implementation (MoSPI) showed. This marks the fourth consecutive month of sub-4% inflation, the longest such streak in at least five years.The data comes just days after the Reserve Bank of India’s (RBI) Monetary Policy Committee cut the repo rate by 50 basis points to 5.5%, its third straight cut and a cumulative reduction of 100 basis points since the easing cycle began in February. The move signals a possible pivot from inflation control to supporting growth.Food inflation came in at just 0.99% in May, down from 1.78% in April and a sharp decline from 8.69% a year ago.A Mint poll of 15 economists had projected CPI ...
Post a Comment
Read more