No impact on inflation even if GST rate is 18-20%: Finance Ministry
The Ministry of Finance has said that all efforts are being made to roll out GST from April 1, 2017, and allayed fears that it will have an impact on inflation even if the rate is kept at 20 percent.
"All efforts will be made with cooperation of every one to meet the deadline of April 1, 2017... There is no such (price rise) threat. States and the Centre will take a call on rates that will take into account all issues, including the concern related to inflation," Finance Secretary Ashok Lavasa told reporters here on Thursday.
The Finance Secretary said the GST regime would bring more compliance, which would mean more transactions falling into the tax net.
"It will bring more efficiency and better prospects for growth," Lavasa said.
Economic Affairs Secretary Shaktikanta Das in a tweet said GST will unleash a lot of energy into the Indian economy and push the GDP growth to over 8 per cent in medium term.
"External factors continue to be of concern. Policy focus will be to strengthen our firewalls against such vulnerabilities," Das said.
In the biggest tax reform since Independence, the Rajya Sabha last night approved the Goods and Services Tax (GST) bill to replace a raft of different state and local taxes with a single unified value added tax system to turn the country into world's biggest single market.