New Delhi,
\nFinance Minister Arun Jaitley today said it is not possible to have one GST rate as the country has vast disparities, but assured investors that government will undertake further reforms after improvement in tax compliance standards.<\/p>\n
A single rate of GST in India \u201ccan\u2019t work at the moment\u201d due to vast disparities in the country\u2019s society, he said while replying to queries from the audience at the India-Korea Summit here.<\/p>\n
The next stage of reforms will start once India becomes a significant tax compliant society, Jaitley said. \u201cAfter we are able to improve the compliance levels the other stage of reform will begin.<\/p>\n
\u201cFor example, we have two standard rates and in the long run I do see them merging into one. For that to happen it will take some reasonable time that is when the compliance levels start moving up,\u201d said the minister.<\/p>\n
On the compliance burden of the GST, Jaitley said it was a little heavy but the process would ease on account of the initiatives being undertaken by the revenue department.<\/p>\n
\u201cAt the moment we are coming out (with norms). It is almost in the final stages of its preparation, where compliances are going to be made simpler itself,\u201d Jaitley said.<\/p>\n
\u201cThe second factor is that in a society like India where you still have a significant population which is below poverty line or still deprived, a single rate in India can\u2019t work at the moment,\u201d he said.<\/p>\n
He said the reason behind India starting off with multiple rates was that the country had 17 taxes and 23 cesses which were amalgamated into the GST. He pointed out that the 28% tax bracket has been significantly thinned and argued that a luxury good cannot be taxed at 5% and there has to be a differential rate in a society with economic disparities like in India.<\/p>\n","protected":false},"excerpt":{"rendered":"
New Delhi, Finance Minister Arun Jaitley today said it is not possible to have one GST rate as the country has vast disparities, but assured investors that government will undertake further reforms after improvement in tax compliance standards. A single rate of GST in India \u201ccan\u2019t work at the moment\u201d due to vast disparities in […]<\/p>\n","protected":false},"author":1,"featured_media":23370,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"footnotes":""},"categories":[410],"tags":[],"class_list":["post-23369","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business"],"_links":{"self":[{"href":"https:\/\/blastingskyhawk.com\/english\/wp-json\/wp\/v2\/posts\/23369","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/blastingskyhawk.com\/english\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blastingskyhawk.com\/english\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blastingskyhawk.com\/english\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/blastingskyhawk.com\/english\/wp-json\/wp\/v2\/comments?post=23369"}],"version-history":[{"count":1,"href":"https:\/\/blastingskyhawk.com\/english\/wp-json\/wp\/v2\/posts\/23369\/revisions"}],"predecessor-version":[{"id":23371,"href":"https:\/\/blastingskyhawk.com\/english\/wp-json\/wp\/v2\/posts\/23369\/revisions\/23371"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/blastingskyhawk.com\/english\/wp-json\/wp\/v2\/media\/23370"}],"wp:attachment":[{"href":"https:\/\/blastingskyhawk.com\/english\/wp-json\/wp\/v2\/media?parent=23369"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blastingskyhawk.com\/english\/wp-json\/wp\/v2\/categories?post=23369"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blastingskyhawk.com\/english\/wp-json\/wp\/v2\/tags?post=23369"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}