Next-Gen GST Reforms To Ease Compliance, Support Small Businesses: Finance Minister

Chennai, Sep 3 (KNN) Finance Minister Nirmala Sitharaman announced that upcoming Goods and Services Tax (GST) reforms will create a more transparent economic framework while significantly reducing compliance requirements for businesses, particularly benefiting small enterprises. 

Speaking at the 120th Foundation Day celebrations of City Union Bank in Tamil Nadu, with President Droupadi Murmu as chief guest, Sitharaman outlined the government's reform agenda.

The Finance Minister referenced Prime Minister Modi's recent announcement establishing a Task Force for next-generation reforms with a mandate to simplify regulations, reduce compliance costs, and create enabling ecosystems for startups, Micro, Small and Medium Enterprises (MSMEs), and entrepreneurs. 

Sitharaman indicated that the planned GST Council meetings would advance the rollout of next-generation tax reforms in the coming months. 

"The planned roll out of the next generation GST reforms with the planned Council meeting tomorrow and day after, will set an economy absolutely open and transparent in the coming months and with further reduction in compliance burden, making it easier for small businesses to thrive," she stated. 

The Finance Minister emphasised the banking sector's critical role in advancing India's Viksit Bharat 2047 vision through expanded credit provision, infrastructure development support, timely MSME funding, financial inclusion initiatives, and diverse sectoral support. 

She identified trust, technology, and transparency as guiding principles for this transformation.

Sitharaman highlighted significant progress in financial inclusion, noting that 56 crore Jan Dhan accounts have been opened over the past 11 years with total deposits of Rs 2.68 lakh crore. 

The majority of account holders are women, reflecting the program's success in reaching previously underserved demographics.

The Finance Minister noted substantial improvements in Indian scheduled commercial banks' asset quality and referenced credit rating agency S&P's upgrade of India's long-term sovereign credit rating—the first such upgrade in 18 years. 

(KNN Bureau)