Hyderabad: Terming the Goods and Services Tax (GST) a revolutionary reform taken in the interest of common people and small traders, Union minister Mukhtar Abbas Naqvi Sunday said the new tax regime would prove to be a game changer for the country's economy.
Addressing traders and people at an awareness programme on the GST in Hyderabad, Naqvi said the introduction of the new tax system by the Narendra Modi government was the biggest economic reform since the Independence.
"GST will change both — the condition and the direction — of the Indian economy," the Minister of State for Minority Affairs said. "There are some misconceptions in the minds of the trade-business community and consumers regarding the GST, particularly regarding the compliance processes, need for computers and internet, number of returns to be filed, and whether the GST will cause inflation. All these are totally incorrect," Naqvi said.
In Prime Minister Modi's words, GST is a good and simple tax, which will eliminate the compounding effects of multi-layered tax system and it was his first among the priorities, the minister said. "There will be absolutely no problem to common people and small traders or big industrialists. The honest will get relief from inspector raj," he said.
He said only those people need to worry after the GST rollout, who consider it their fundamental right "not to pay taxes".
According to Naqvi, "anti-GST activities" were happening on social media. "Those who do not want to see the country's economy to get strengthened and country marching on the development path, will create some confusion, but they will not succeed in their attempts," he said. "One of the major benefits of GST is that it will ensure transparency in the entire taxation system. In the new system, there will be one country, one tax. GST is also one of the best examples of India's federal structure," Naqvi said.
The GST 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.
It will make India's import and export much competitive and increase domestic as well as foreign investment.
Seventeen different taxes and 23 cesses have been fitted into a single tax, he said.
According to him, as compared to the previous taxes, rates set by the GST Council are lower for most products. This will ensure that it does not cause inflation and price rise.
"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," Naqvi added.
Updated Date: Jul 09, 2017 17:32 PM