If GST not rolled out by Sept, it would not be possible to run the country: Arun Jaitley
Finance Minister Arun Jaitley said on Friday that there is a Constitutional compulsion to roll out the Goods and Services Tax (GST) and if it is not rolled out by September next year it would not be possible to run the country without revenue collection.
Finance Minister Arun Jaitley said on Friday that there is a Constitutional compulsion to roll out the Goods and Services Tax (GST) and if it is not rolled out by September next year it would not be possible to run the country without revenue collection, as the existing indirect taxes will come to an end by then.
He asserted that the government's intention is to kick off the ambitious reform by April 1 next year. “So, you have a Constitutional compulsion to have a 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," Jaitley said after the GST Council meet in New Delhi.
He argued for widening the tax base, saying efforts are on to make taxation process far simpler and make rates more reasonable.
The minister said GST 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.
Jaitley said investors would be careful of choosing states if they are seen to be on the wrong side of reforms. "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 said.
He termed GST as a game changer and said that the Constitution does not permit delay in GST implementation. "The critical issue is of cross empowerment or dual control. Are we close to a resolution? I will still keep my fingers crossed," Jaitley said