GST Reform: Small Businesses to Get Big Relief, Hints Finance Minister Sitharaman

Chennai (The Uttam Hindu) - Union Finance Minister Nirmala Sitharaman on Tuesday said that the next generation GST reforms will create an open and transparent economy, reduce compliance burden and benefit small businesses.

Speaking at the 120th foundation day celebrations of City Union Bank in Tamil Nadu, the Finance Minister said that Prime Minister Narendra Modi has announced the formation of a task force for next generation reforms aimed at simplifying regulations, reducing compliance costs and creating a more enabling ecosystem for startups and MSMEs. The GST Council is scheduled to meet on September 3-4 to reduce the rates of Goods and Services Tax.

The Finance Minister appealed to all the banks to accelerate development and build trust. He also said that banks should ensure good governance in their structure and invest every rupee in nation building. Finance Minister Sitharaman further said that our real GDP growth rate in April-June was 7.8 percent and our sovereign credit rating has been upgraded for the first time in 18 years. The inflation rate has come down by 1.15 percent in the last 8 years. The fiscal deficit is expected to be 4.42 percent this year. He further said that schemes like PM Jan Dhan have brought about a big change and more than 56 crore bank accounts have been opened in it.

Prime Minister Narendra Modi, in his Independence Day speech from the Red Fort, had hinted at sweeping changes in the GST system, saying, "This Diwali, I am going to celebrate a double Diwali for you. The countrymen are going to get a big gift, there will be a huge reduction in GST on common household items." Prime Minister Modi stressed the urgent need to review GST rates and called it the "need of the hour". He announced, "GST rates will be reduced drastically. Taxes will be reduced for the common people."