Skip to main content

GST regime to stabilise in next 18 months: Niti Aayog

GST regime to stabilise in next 18 months: Niti Aayog



Bengaluru: The goods and services tax (GST) regime would get stabilised in the next 18 months, Niti Aayog vice chairman Rajiv Kumar said on Friday.
“Give us time and you will see that in the next 18 months, GST will get stabilised, and this is where I think your (chartered accountants or CAs) role is critical,” he said while addressing the southern regional conference of the Institute of Chartered Accountants of India (ICAI) in Bengaluru. “Unfortunately, some of you are trying to scare investors away from GST rather than helping them. I think it is rather unfair,” he added.
Kumar said if CAs do not extend cooperation, India will not be able to erase dualism in terms of organised and unorganised sectors, which is not good for the economy. “Formalisation of the economy will give a fillip to tax compliance. At present, tax compliance is between 40 to 43%. It must increase to 90%. The role of CAs becomes that much important,” he said.
Kumar said tax rates under GST will rationalise into three slabs, from five at present. “In times to come, tax rates under goods and services tax will converge into three slabs — 0, 12 and 28 per cent,” he said. Kumar said to expect one tax rate under GST was impractical, given the size of the country which is equal to all European nations from Moscow to London put together.
“Also, there are varied cultures and business ethics followed by different states, and hence it is not feasible to have one tax rate under GST. Hence, it was necessary to have those multiple rates,” he said. Kumar said it will be a huge step forward if petroleum products are brought under GST, about which union finance minister Arun Jaitley had recently spoken in the Rajya Sabha.
On demonetisation, he said the government may not have been able to convert all black money into white, but it has converted black money into grey. “Believe me, Rs4.5 lakh crore that has returned to banks by way of demonetisation will be acted upon,” he added.
Labels:
Location: ASTER BILLING SOLUTION, Nandanam,TC-11/415-3, Navodaya Gardens, Nalanchira(po), Parottukonam, Tilak Nagar, Thiruvananthapuram, Kerala 695015, India

Comments

Post a Comment

Popular posts from this blog

How GST will impact the wallet of the common man

How GST will impact the wallet of the common man Since the passing of the GST Constitutional Bill by the Rajya Sabha in August last year, the country has been preparing itself for the new tax regime. The new GST law is India’s biggest tax reform initiative which is expected to improve compliance levels, increase government revenue, and create a common playing field for the businesses by amalgamating a host of central and local taxes. On the face of it, GST seems to be a mixed bag with some of the necessities becoming cheaper, while the others might get more expensive. While in the longer run the Goods and Service Tax might have a favorable effect on most of the sectors of the economy, in the short run, as with the most of the reforms, the benefits seem to be limited. Based on the experience of GST implementation in other countries, India could observe an inflationary impact at the onset of the reform, which might fade away once the legislation sinks in. Things that might g...
Post a Comment
Read more

From GST to Bitcoin, What People in India Googled the Most in 2017

From GST to Bitcoin, What People in India Googled the Most in 2017 Everyone familiar with the World Wide Web falls back on Google to know the answer to – “what is”. In 2017, internet users in India took to Google to ask ‘what is’ on a varied range of topics – from the Goods and Services Tax (GST), a new indirect tax regime introduced in July this year, to Bitcoin, a digital currency that has been around for almost a decade now, but surged in value exponentially this year. Here are the five most searched ‘what is’ questions of 2017 – and quick Google searched answers for them. 1. What is GST? GST is a single tax on the supply of goods and services, from the manufacturer to the consumer. (Photo: Abhilash Mallick/ The Quint ) GST is a single indirect tax that replaced India’s old system of multiple indirect taxes in July this year – making way for a pan-India, comprehensive system. Also Read:  9 Basic Questions About GST You Should Know the A...
Post a Comment
Read more

Relaxation in Return filling Procedure under GST

Relaxation in Return filling Procedure under GST The GST Council in its meeting held on 18th June, 2017 has allowed relaxation in the return filling procedure for the first 2 months viz. July and Aug, 2017. An easy and simple Form GSTR 3B has introduced to be filled by 20th of next month and further time has been allowed for filling GSTR 1 & GSTR 2. The detail Press Release is attached below:- The post  Relaxation in Return filling Procedure under GST  appeared first on  RITUL PATWA & CO, Chartered Accountants .
Post a Comment
Read more