Constitutional compulsion to roll out GST before Sept 16, 2017: Arun Jaitley
Citing constitutional compulsion, Finance Minister Arun Jaitley on Friday sought to drive home the point that the Goods and Services Tax (GST) has to roll out before September 16 next year as the existing indirect taxes will come to an end by then and it would not be possible to run the country without revenue collection.
He made a pitch for widening the tax base, saying efforts are on to make taxation process far simpler and make rates more reasonable.
For instance, he said, the GST Council is deliberating on ways to reduce the taxation process, including assessment by tax officials.
"Today, each person gets assessed thrice, in each of the three taxations (including VAT and central excise). Now, you will only be assessed once and what one authority assesses, others will have to accept that assessment," he said.
Terming GST as a game changer, Jaitley said, "The Constitution does not permit delay in GST implementation. The government notified GST on September 16 and the constitutional amendment itself says the current indirect tax system can continue for one year, after which the GST has to come."
ALSO READ: Cash crunch to ease by December 30; no GST delay: Arun Jaitley
So, if as on September 16, 2017, there is no GST, then there is no taxation in the country, he reasoned.
"So, you have a constitutional compulsion to have a Goods and Services Tax (GST) in place before September 16 (2017), otherwise the country doesn't run, and the tax is absolutely essential. Therefore, our intention is it gets implemented from April 1, 2017, that was the original intention," he said.
Jaitley made the point that states should not oppose every reform for the sake of opposition because that makes investors wary.
"The states must welcome the decision and I can only tell you, if some states are seen as opposing every reform, then investors in the country and the ones coming from outside, must decide which are the states they want to invest in," he cautioned.
"So, if your state is seen on the wrong side of the reform, then investors are going to be very wary of those states."
Later in the day, Trinamool Congress MP Derek O'Brien said that since 2004, West Bengal is consistently supporting the GST.
"Please do not lecture us on GST. Since 2004, we have been consistent in our support for GST. It is BJP which during its stint in opposition had stalled it," he said.
ALSO READ: India's growth will touch new heights after demonetisation, GST: FM Jaitley
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
Retirement Planning: SIP+SWP combination; Rs 15,000 monthly SIP for 25 years and then Rs 1,52,000 monthly income for 30 years
Top Gold ETF vs Top Large Cap Mutual Fund 10-year Return Calculator: Which has given higher return on Rs 11 lakh investment; see calculations
Retirement Calculator: 40 years of age, Rs 50,000 monthly expenses; what should be retirement corpus and monthly investment
SBI 444-day FD vs Union Bank of India 333-day FD: Know maturity amount on Rs 4 lakh and Rs 8 lakh investments for general and senior citizens
EPF vs SIP vs PPF Calculator: Rs 12,000 monthly investment for 30 years; which can create highest retirement corpus
Home loan EMI vs Mutual Fund SIP Calculator: Rs 70 lakh home loan EMI for 20 years or SIP equal to EMI for 10 years; which can be easier route to buy home; know maths
11:53 AM IST