Surat: Central Government is committed to roll out Goods and Services Tax (GST) from July 1 to create a common national market for seamless flow of goods, said Dr Hasmukh Adhia, revenue secretary, Government of India, here on Saturday.
Adhia, while speaking at the GST conference organized jointly by Southern Gujarat Chamber of Commerce and Industry (SGCCI), Federation of Indian Art Silk Weaving Industry (FISAWI) and Central Excise, Customs and Service Tax commissionerate at VNSGU’s convention hall, said, “The USA’s Federal Bank has studied the impact on GST on India’s economy. You would be surprised to know that it has predicted GDP growth by 4.2 per cent.”
Dismissing fears that GST’s implementation will lead to spurt in prices, Adhia said transition to a new tax regime is going to be a smooth ride. The biggest benefit is abolition of cascading tax regime. Now, there will be a single-point taxation system in the slabs starting from 5 per cent, 18 per cent and 28 per cent, depending on the goods and services offered.
GST will prove to be a superb move by the government. There will be seamless flow of input tax credit, minimum human interface and corruption-free system that will abolish parallel black economy and help create a common national market, observed Adhia.
Asked about traders defaulting on payment, Adhia said a system of GST compliance rating will be put in place so that every trader or businessman is rated based on their track record. He added that once the rating is made public on the GSTN portal, a businessman can decide whether to deal with a trader or entity who does not deposit tax with the government and has a low compliance score.
“It is the duty of the trade community and the government to expose black sheeps in the trade. There will be no escape route for defaulters under GST,” said Adhia.
Giving an assurance to textile entrepreneurs on the impact of imported fabrics, Adhia said GST rates will be same for importers under IGST. This will give a level playing field to indigenous manufacturers to compete in the market. On the other hand, exporters will get 100 per cent rebate on GST paid on the goods and services for the products exported outside the country.