GST is at the final stages of implementation: Jaitley

Vishakhapatnam, Jan 27 (KNN) Union Finance Minister Arun Jaitley today said most contentious issues on Goods and Services Tax are sorted out and the bill is at the final stages of implementation.

Supporting Centre’s demonetisation drive, he said, “Demonetisation shook the system for a short while, will integrate informal with formal economy in long run.” 

The government is planning to implement GST from July 1, 2017, which will absorb excise, service tax, VAT and other local levies.

Addressing CII Partnership Summit in the city today, Jaitley said, “most contentious issues regarding the GST have been sorted out between the Centre and states and the new indirect tax regime is at the final stages of implementation.” 

Jaitley said, the demonetisation drive “shook” the financial system for a short while, but will integrate the shadow economy with the formal in the long run and ensure better tax compliance.” 

“It also becomes very unfair on the normal taxpayer because what the evader manages to evade is what the compliant has to pay more,” Jaitley said.

It is therefore that the government decided to demonetise the high denomination currency, “which shook the system for some time, according to him.

Jaitley further added that the size of the formal economy is expanding, so are the transactions in the banking system and through the digital mode.
 On GST, he said “I am glad that almost all state governments have actively co-operated in making this a reality. Most of the contentious issues have been sorted out in the GST Council, a forum where you will see deliberative democracy in action. Those are now at final stages of implementation.”