New Delhi: Indicating that further simplification of the Goods and Services Tax is on the anvil, Prime Minister NarendraModi said his government wants to ensure that 99 per cent items attract sub-18 per cent GST slab.
Before implementation of the GST, registered enterprises only numbered 65 lakh, which has now risen by 55 lakh, Modi said, addressing the Republic Summit here.
“Today, the GST system has been established to a large extent and we are working towards a position where 99 per cent items will attract the sub-18 per cent GST slab,” Modi said.
Modi indicated that the 28 per cent slab of GST would only be restricted to a few select items, such as luxury goods. “We are of the opinion of making GST as smooth as possible for the enterprises,” he said. “In earlier days, the GST was framed according to the existing VAT or excise tax structures exercised in those respective states. (With) the discussions held from time to time, the tax system is getting improved,” Modi said.
“The country was demanding GST for decades. I am pleased to say that GST implementation has removed contradictions in the trade market and efficiency of system is improving. The economy is also getting transparent,” Modi said.
Even a small tax reform in developed countries is not easy, he said.
Modi also spoke of his government’s commitment to root out corruption.
“Corruption had been taken as a new normal in India. It was ‘Chaltahai’. Whenever anyone used to speak up, someone would say, ‘This is India. This is how it is’,” Modi said.
“Why should it be like this,” he said.
When companies used to be unable to repay loans, nothing used to happen to them and their owners, he said.