The Goods and Services Tax law will boost domestic demand, create more opportunities for domestic business and drive job creation, Prime Minister Narendra Modi said on Sunday.
He said so far the domestic market has been fragmented and different taxes across different states have made goods and services more expensive. “This has hampered growth in inter-state commerce. We are enacting a Goods and Services Tax law, to create an integrated national market. This will further boost domestic demand, create more opportunities for Indian business and drive job creation,” he said.
India today, Modi said, is the fastest growing major economy, and one of the most attractive destinations for FDI. “Indeed, we stand out as a bright spot in the global economy. This is the result of India’s fundamental strengths -- democracy, demographic dividend and demand. We need to fully harness these strengths. This can happen only if businesses make long-term investments that create jobs and sustain economic growth,” he said.
Addressing the valedictory function of an international conference on arbitration, the Prime Minister said India is experiencing a digital revolution which is bridging the digital and economic divide in the society in general and rural society in particular.
“A boost to the rural economy through this revolution will make the Indian economy even more robust,” he said. Innovative business models and app-based start-ups have instilled a spirit of enterprise among Indians, he noted, adding that yesterday’s job seekers are becoming today’s job creators. “The legal profession is also opening up to the promises of the digital world. From cause-lists to case-laws, the lawyer’s library is now just a click away on your mobile phone,” he said.
Meanwhile, Revenue Secretary Hasmukh Adhia said that individuals and entities can pay taxes online using debit or credit cards once the Goods and Services Tax (GST) is rolled out. The government proposes to roll out the new indirect tax regime from April 1 next year and has made registration, refunds, returns filing and payment processes online.
“With regard to payments, the best thing that will happen is all payments will have to be made online. You can use any mode of payment, electronic, NEFT, RTGS. You can do it through debit cards or credit cards of any bank. “You need not open account in banks of government. Even if you have account in a private bank you can transfer money and it will reach the government,” Adhia said while addressing the Global Investors Summit here.
He said GST will make it easier for traders and industry to access Input Tax Credit and also ease compliance burden as the entire country will become a single market.