Constitution Does Not Permits A Delay With GST: FM

By | December 2, 2016
(Last Updated On: December 2, 2016)

Constitution Does Not Permits A Delay With GST: FM

Published on Dec 2, 2016

Speaking at the , FM Arun Jaitley stated that the constitution does not permits a delay with GST.

New Delhi: Union finance minister Arun Jaitley on Friday said that there is a constitutional compulsion to implement the Goods and Services Tax (GST) within its deadline, and it’s implementation can not be delayed beyond September 2017.

Speaking at the Hindustan Times Leadership Summit in New Delhi, Jaitley said the GST notification came on 16 September 2016, so by 15 September 2017, “if we don’t have the GST, we can have no tax at all”.

He said, it’s a “constitutional compulsion” to implement the GST by September.

Jaitley said the demonetisation move along with the GST will help the country’s gross domestic product (GDP) to grow bigger, arresting concerns from certain section of industry and political parties on its long-term impact on the economy.

“Demonetisation plus GST means bigger economy, and higher and better GDP,” Jaitley said. He said both the moves will lead to a cleaner tax system in the country.

Talking about the benefit of demonetisation and the possible financial windfall for the government due to it, the finance minister said it will have four key benefits.

One, more money in the banks because of the rush in deposits will give banks the ability to lend at a more rational cost.

Second, money not deposited with the Reserve Bank of India but was in circulation earlier before the ban can be used for constructive work.

Third, the exemplary tax (unaccounted for cash) will add to the government kitty.

Four, it will expand India’s tax base.

A bigger tax base means a better tax structure, Jaitley said, adding that he has already talked about moderating the corporate tax structure in his previous Union budget.

Asked when the cash crunch will end, the finance minister said that by 30 December a significant amount of the cash will be in circulation, but clarified that the circulating cash will never be the same as what the situation was on 8 November.

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