Finance Minister Arun Jaitley today said it is not possible to have one GST rate as the country has vast disparities, but assured investors that government will undertake further reforms after improvement in tax compliance standards.
At the moment we are coming out (with norms), he said.
Finance Minister Arun Jaitley today said it is not possible to have one GST rate as the country has vast disparities, but assured investors that government will undertake further reforms after improvement in tax compliance standards.
A single rate of GST in India 바카라can바카라t work at the moment바카라 due to vast disparities in the country바카라s society, he said while replying to queries from the audience at the India-Korea Summit here.
The next stage of reforms will start once India becomes a significant tax compliant society, Jaitley said.
바카라After we are able to improve the compliance levels the other stage of reform will begin.
바카라For example, we have two standard rates and in the long run I do see them merging into one. For that to happen it will take some reasonable time that is when the compliance levels start moving up,바카라 said the Minister.
On the compliance burden of the GST, Jaitley said it was a little heavy but the process would ease on account of the initiatives being undertaken by the revenue department.
바카라At the moment we are coming out (with norms). It is almost in the final stages of its preparation, where compliances are going to be made simpler itself,바카라 Jaitley said.
바카라The second factor is that in a society like India where you still have a significant population which is below poverty line or still deprived, a single rate in India can바카라t work at the moment,바카라 he said.
He said that the reason behind India starting off with multiple rates was that the country had 17 taxes and 23 cesses which were amalgamated into the GST.
He pointed out that the 28 per cent tax bracket has been significantly thinned and argued that a luxury good cannot be taxed at 5 per cent and there has to be a differential rate in a society with economic disparities like in India.
Answering questions on the banking sector, the minister admitted that banks have become a little more cautious in the last few years as they have been on the receiving end of some of their clients.
To a query apparently related to Korean mining major Posco바카라s investment in Odisha, Jaitley said: 바카라Let me assure you that many of these were problems of a historical legacy and for the last few years most of these if not eliminated have certainly come down.
바카라Therefore this old legacy problem, the kind of problem that you mentioned with regard to Odisha investment, I don바카라t foresee in today바카라s India that kind of a history ever being repeated바카라.
Addressing the Summit organised by CII, he said there is a sea change in the attitude of states also, owing to competition with each other.
PTI