GST made doing business easier for traders: Arun Jaitley

The GST, the minister said, has also reduced the compliance burden on traders as under the new regime a trader is not required to file multiple tax returns.

By: Express Web Desk | New Delhi | Updated: December 1, 2017 9:03 pm
Finance Minister Arun Jaitley (Express photo by Renuka Puri)

Just a day after the India’s GDP growth in the July-September quarter showed a growth rate of 6.3 per cent after the previous quarter recorded a three-year low of 5.7 per cent, Finance Minister Arun Jaitley on Friday said the Goods and Services Tax (GST) has made doing business easier for traders by expanding the market place and reducing tax compliance burden. He also affirmed that the two structural reforms by the Narendra Modi government — GST and demonetisation — will benefit the economy in the medium and long-term.

While responding to questions regarding the second quarter economic growth estimates, the finance minister said, “GST has made doing business and trade very easy. The market size for every trader has grown. Now whole country is his market.”

After reversing a five-quarter slide in Gross Domestic Product (GDP) growth, India’s economic growth bounced back from a three-year low to expand by 6.3 per cent in July-September quarter as manufacturing increased and businesses adjusted to the new GST tax regime. The growth rate had slipped to three-year low of 5.7 per cent in the first quarter of 2017-18 financial year.

Jaitley said that the GST has also reduced the compliance burden on traders as under the new regime a trader is not required to file multiple tax returns. “The tax rates too are being rationalised and a trader will no more be required to confront inspectors,” he added.

While the impact of demonetisation of high-value currency notes of Rs 500 and Rs 1000 in November last year was limited to one or two quarters, the impact of GST was limited to one quarter, mainly because of de-stocking by corporates, said the finance minister.

“The GST impact was only for one quarter mainly because of destocking. That was our assessment. The (GDP) figures indicate that. Structural reforms benefit in the medium and long-term. Both these steps will benefit the economy,” Jaitley said.

With PTI Inputs

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  1. R
    Dec 2, 2017 at 1:08 am
    Some individuals may consider it their right to criticise the government's tax-system, but the larger business community is willingly adapting to the transformation in the taxation process and it does lead to greater transparency and accountability with enough checks and balances in place in the entire proccess-implementation by an increasingly motivated Tax-Department which has embraced Modi-Jaitley Duo's vision of treating the structural reforms in measures like demonetisation and GST as steopping-stones to a lasting and strong foundations of a robust economy of a New-India in the near future. All honest business-owners, howsoever big or small are today driven by commitment to the Nation as citizens in the first place and that is what inspire to them deliver fairly to customers without putting the burden of losses or profits on the Government but by embracing and employing simplified and well-researched tax-reforms that are now in place.
    1. S
      Sing is
      Dec 1, 2017 at 10:15 pm
      Just wait. Traders will teach you a lesson.
      1. B
        Bharatiya Jokers Party
        Dec 1, 2017 at 9:47 pm
        This man would have been an embarrassment to any political party that puts common people's interest ahead but in Bharatiya Jokers Party he is considered a genius. This also shows lack of talent in this party.
        1. M
          Dec 1, 2017 at 9:05 pm
          Just ask a small business man, how much he is suffering. If he is employing a small team of people , in fact he is giving employment, monthly PF and ESI returns, quarterly TDS returns, yearly IT returns and now monthly three returns for GST. Every department treats him as a thief and try to find out his errors to penalise him. After full filling all these obligations, if any time is left, he also does some business. Instead of encouraging people to become enterprenures, we are making them servants of big industrialists. After some years, the entire business will be controlled by a few big industrialists.
          1. V
            Dec 1, 2017 at 9:02 pm
            This is vote bank statement of Fakku team Jaitely either hook or crook modi and BJP Want Gujarat like UP how they played with EVM Machines. Gujarat people must aware well to vote they want change in Government this all fakku statements not going to work this time for fakky team.. Keep all these tacktis in u r all pocket fakky team BJP .. Jai Hind
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