New Delhi : Finance Minister Piyush Goyal on Thursday said the capacity to slash the GST rates on more items would go up as Goods and Services Tax (GST) revenues and the compliance rate increases and the economy formalises.
Goyal was speaking in the Lok Sabha after moving four bills seeking to amend the Goods and Services Tax (GST) laws for consideration and passage. The bills were Central GST (Amendment) Bill, Integrated GST (Amendment) Bill, GST (Compensation to States) Amendment Bill and Union Territory GST (Amendment) Bill.
The Minister said the “GST Council has reduced rates on many items and services in the last round. We want the consumer to be burdened less by indirect tax.”
Goyal said in the last one year, GST on about 400 goods and 68 services were reduced. GST came into force from July 1, 2017.
“We are empowering 125 crore people of India through Good and Simple Tax,” he said, referring to the GST. Promotion of an honest tax structure will improve compliance as it will encourage people to come forward and pay taxes, he said.
On the problems faced by the textile sector, he said the GST Council has resolved most of the problems of the sector. With the introduction of GST, textile has become cheaper, he added.
He also pointed out that the government was able to collect GST in line with the country’s fiscal deficit target.
Referring to the recent growth forecast about India by the IMF, he said “I think India’s economic growth will be better than this forecast.”
India is projected to clock an economic growth of 7.5 per cent in the 2019-2020 fiscal year on strengthening of investment and robust private consumption, the IMF had said in its latest report.
Noting that India was being called the ‘Golden Bird’, the minister said “now the entire world believes that India will again become the Golden Bird under the leadership of Prime Minister Narendra Modi”, adding that the reform measures undertaken by the government has benefited India and the rest of the world.