Hyderabad: Union Minister of State for Minority Affairs Mukhtar Abbas Naqvi said that Goods and Services Tax (GST) is a “revolutionary step” taken in the interest of common people and small traders and it will a game changer for Indian economy.
Addressing common people and traders at an awareness programme on GST here on Sunday, Naqvi said that the implementation of GST by the government led by Prime Minister Narendra Modi is the biggest economic reform after the Independence. GST will change both condition and direction of the Indian economy, he said.
Naqvi said that there are some misconceptions in the minds of the trade and business community and consumers regarding GST, particularly regarding compliance processes, need for computers and internet, number of returns to be filed, and whether GST will cause inflation. All these are totally incorrect.
The Union Minister said that in Prime Minister Modi’s words, GST is a “good and simple tax” which will eliminate the compounding effects of multi-layered tax system.
There will be absolutely no problem to common people and small traders or big industrialists. The honest will get relief from “Inspector Raj”.
Naqvi said that only those people need to worry after GST “who considered it as their fundamental right not to give taxes.” One of the major benefits of GST is that it will ensure transparency in the entire taxation system. It is an historic step, a historic achievement for India. In the new system, there will be “one country, one tax”.
He said that GST is also one of the best example of India’s federal structure. GST is the ‘sanjhi virasat’ (combined legacy) of the people of India, and not the creation of the Central Government alone. It has been supported by every political party, and is going to benefit the entire country.
States and the Centre will work as a team in GST. GST Council met 18 times, and there was never any need for voting, because of the unanimity.
GST will make India’s import and export much competitive, it will increase domestic as well as foreign investment. GST is one indirect tax for the whole nation, which will make India one unified market.
It is proposed to be levied at all stages right from manufacture up to final consumption with credit of taxes paid at previous stages available as setoff.
17 different taxes and 23 different cesses have been fitted into a single tax. As compared to previous taxes, rates set by GST council under GST are lower for most products. This will ensure that GST does not cause inflation / price rise, he said.
Naqvi said that GST will create an enabling environment for Growth, Seamless trade, Transparency, and lead to greater “Ease of Doing Business”. In addition, it will provide a boost to Make in India and facilitate India’s emergence as the next export hub, because of counter-tax (in the form of IGST) to be levied on imports, thereby aiding domestic manufacturing. It will bring economic growth by increasing tax collection and reducing prices.
The Union Minister said that GST will improve trade by reducing borders and making India into a “One Nation, One Tax” economy.
GST is a Great Step towards Transparency by removing multiple taxes and procedures into One Tax regime. People who are looking for an honest tax regime are welcoming this wholeheartedly.
Naqvi said that the Prime Minister had said “Sardar Vallabhbhai Patel had politically integrated over 500 states into one India and now GST has done the same but economically. (INN)