GST Bill roll-out next year, PM Modi assures German investors

Promising to create favourable business conditions, Prime Minister Narendra Modi on Tuesday expressed the hope that Goods and Services Tax (GST) will be rolled out next year. Addressing Indian and German business leaders here, Modi said, “We have introduced GST bill in Parliament and hope to roll it out in 2016.” Claiming India was a “bright spot” in global economic slowdown and assured foreign investors of favourable business conditions, including strong intellectual property rights protection.

Renewing government’s commitment to creating favourable conditions for business and industry, Modi said: “Never before is India so well prepared to absorb talent, technology and investment from outside.”

“We have introduced the GST Bill in parliament; we are hopeful to roll it out in 2016,” Modi said at the Indo-German Summit here, sharing the dais with German Chancellor Angela Merkel. She is on a three-day visit to the country. The GST bill is facing hurdles in the opposition dominated Rajya Sabha despite an aggressive push by the government for its passage. At the Summit attended by the who’s is who of the India Inc, particularly the IT sector, Modi also said India was committed to protecting Intellectual Property Rights of all innovators and entrepreneurs. The PM said that his government has taken decisive steps to remove long pending concerns of investors. “We have clearly articulated that we will not resort to retrospective taxation.”

This position has been reinforced by not going for imposition of MAT on foreign portfolio investors, he said. “We have also decided to defer the implementation of the general anti avoidance rules (GAAR) for 2 years.” Stating that a series of measures taken during the 15 months of BJP rule has restored credibility of India in eyes of global players, he said the government was speeding up regulatory clearances, reducing licensing requirements in the defence sector and making tax policy more consistent.