The procedure has been performed successfully, it added
NEW DELHI(PTI): India is gradually transforming most of its taxation laws for a greater degree of stability and predictability, Finance Minister Arun Jaitley said, stressing that the proposed Goods and Services Tax (GST) is a major step in this direction.
“It has been our effort in India to gradually transform and change most of our taxation laws, put to rest various disputes and issues which have been pending and make sure that the scope of discretion is eliminated and there is a greater degree of stability and predictability as far as taxation laws are concerned,” Jaitley said.
In a video message to an inaugural global conference on legal matters being held here on January 21-22, Jaitley noted investors’ preference for stability of laws and dislike of uncertainty and assured them that India is “seeking to bring about convergence (of laws) among the states in India too”.
“One major step needed to increase the ease of doing business, is to reduce inter-state variation and the barriers to inter-state trade,” Jaitley told some 500 delegates from 40 countries attending the conference on ‘Doing Business Across Asia: Legal Convergence In An Asian Century’.
In several areas, the Indian government has put out a model law encouraging their adoption by the states. “The proposed Goods and Services Tax is a major step in this direction,” he said.
The net impact of the GST, once it is put into force, is that there will be a seamless transfer of goods and services across the country.
“There will be uniformity in taxation rates, there will be much greater compliance and obviously certainty… it’s going to help India’s GDP,” he said.
The GST Bill has been pending in the Rajya Sabha since the past three sessions. The opposition Congress wants no additional cess and a constitutional cap of 18% on the tax.
“The fact is that businesses need a level of tolerance for diversity of laws if they are to exploit the opportunities that come from geographical diversification,” said Jaitley.