AHMEDABAD: Union Finance Minister Arun Jaitley said the government is committed to implement Goods and Service Tax (GST) from April 1, and all the issues that the Centre and the States disagree upon will be resolved in a next few weeks.
Addressing a seminar on the GST at the Vibrant Gujarat Summit in Gandhinagar, Mr. Jaitley said the deadline for its implementation was September.
“One Nation One Tax regime will lead to a seamless and hassle-free transfer of goods and services in country. Implementation of GST will improve and expand India’s economy,” Mr. Jaitley said.
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He also dismissed fears of slowdown in the economy due to demonetisation by saying that the GST and note ban will boost growth and their impact will be seen next year.
“Difficult decisions initially pass through difficult phases. Historic decisions have temporary pain attached to them,” he said.
The Finance Minister held that cashless economy is the future and the government will promote it. “Excessive paper currency has its own vices, leads to its own temptations. We have seen its impact in India,” he said.
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Meanwhile, the Reserve Bank of India (RBI) Governor Urjit Patel, who addressed a seminar on the international financial services centre that is coming up in Gujarat’s GIFT city, urged the government to cut down on debt, as it is the highest among the G20 countries.
“Since 2013, the Central government has successfully embarked on a fiscal consolidation path. Even then, our general government deficit is, according to IMF data, amongst the highest in the group of G-20 countries. In conjunction, the level of our general government debt as a ratio to GDP is cited by some as coming in the way of a credit rating upgrade,” he said.
Mr. Patel did not comment on demonetisation.