New Delhi, Aug 8
Minister of State for Power, Coal, New & Renewable Energy and Mines Piyush Goyal today said the introduction of Goods and Services Tax (GST) aims to bring the informal sector under the ambit of formal economy.
The introduction of GST aims to bring the informal sector under the ambit of formal economy, said the Union Power Minister, Piyush Goyal.
The Minister was addressing a session on ‘GST- The Indian Economy and the Way Ahead’. The session was organized by FICCI Ladies Organisation (FLO). “The GST framework captures every transaction from end to end, recording them from source till the end.” said the Minister. According to him, this removes the uncertainty while promoting transparency and corruption free business environment.
GST according to the minister would help increase the tax base for collection which would eventually lead to reduction in tax rates. GST would enable targeted spending towards the betterment of the poor, old and other deprived sections of the society. Mr. Goyal also believed that GST could help boost the infrastructure of the country.
The newly reformed tax scheme is a major advantage for businesses as well. According to the minister GST creates a level playing field with the help of technology. Earlier, with multiple taxes in place, it was easier to evade taxes but the GST framework makes it necessary for businessmen to record each transaction.
Referring to different tax slabs in GST, Mr Goyal said one tax for the entire range of goods and services would have created an imbalance in the economy by making common goods expensive. Therefore, with different tax rates, the government attempted to keep the tax on common goods lower or equal to earlier regime wherever possible to keep them affordable.
Ms Vasvi Bharat Ram, President, FLO, said, “The vision of FLO is to promote economic empowerment and equal opportunity for women. We aim to empower women with enhanced knowledge on GST and the implementation of it in business as also daily lives”