With the rumour mill buzzing about a delay of the GST rollout, many have started to question the date of implementation. Will the rollout happen on the date planned?
YES. The answer to all the questions asked and doubts raised is, a simple yes!
In multiple instances, Bharatiya Janta Party, the leadership of the country has stated that there is no need for the delay in the rollout of GST. In an interaction with the industry bodies, Revenue secretary Mr. Hasmukh Adhia requested the members of trade and commerce to not fall prey to the rumours that the GST rollout is about to be delayed by 2 months reported the economic times on the 30th of May.
Revenue secretary Mr. Adhia was also quoted saying that they have to find a solution to problems rather than halting the whole process.
“With all the procedural matters decided, registrations are taking place at a fast pace. Today, I see no reason why we can’t target July 1,” Finance Minister Mr. Arun Jaitley told CNBC TV18. Mr. Jaitley also said that they were going to be teething troubles but he estimated no negative impact on the growth of the country’s GDP.
With the Council having decided the GST rates for all the goods and services, the next meeting is scheduled for the 11th of June where the agenda is to review and discuss the various representations made. Further to this, Mr. Jaitley also explained as to why a single tax rate cannot be implemented for all the goods was not feasible.
“It is a real system. It is not a complex system. You have a whole legacy of different products being taxed at different rates. If you had fixed one single rate and let us say the single rate had come to 14-15% — that seems to be the normal common sense — then from tobacco to luxury cars to other sin products would all be 15% and flour and rice would also be 15%. It would be disastrous if we did that,” the Finance Minister told the Economic Times.
It is estimated that the GDP of the country has a potential to grow 15% and the GST is all set to enabling potential reach, to the country. The statement is further supported by a study conducted by two US-based economists who forecasted an increase in growth rate by 4%.
Will India see such phenomenal growth?
We shall have to wait and see. But one thing is for certain, GST will rollout on the 1st and it would be best for all business prepare for it!