Economic affairs secretary Shaktikanta Das has informed that the Goods and Services Tax (GST) will be rolled out by July 2017. He said that the States have agreed to the details of GST and it will not be delayed any further. It may be recalled that earlier some States had raised objections to the tax structure of GST, which had put a question mark on its implementation. However, things have now been smoothed out according to Das. “GST implementation is a huge one and that is going to be implemented by July 1. Both central and state governments are working on this,” said Das.
The launch of GST has been pending for around a decade. With its implementation, it will result in the creation of one of the world’s biggest single markets. GST will be a groundbreaking move for the country’s economy, as it will replace the existing complicated tax structure that includes central excise, state taxes, local taxes, etc. Overall, it will replace around 17 different types of federal and State taxes. GST will be instrumental in making the movement of goods cheaper and seamless. It will effectively create a single market that will have 1.3 billion consumers.
Experts say that GST has the potential to rev up economic growth by as much as 2 percentage points. It will boost revenues, help reduce budget deficit and attract more funds for infrastructure development.