Banking on the positive effects of demonetisation, the Government is confident that the new Goods and Service Tax (GST) regime will be implemented from July 1 this year as all States are already on board.
“The positive effects of demonetisation will be visible from April and the completion of remonetisation process will drive consumption going forward. All States are on board for rolling out the new tax regime from July 1,” Economic Affairs Secretary Shaktikanta Das said on Tuesday at the launch of Economic Survey of Organisation for Economic Cooperation and Development for India.
In line with the statement made by Das on the deadline of GST rollout, Finance Minister Arun Jaitley also said the Government hopes to get all GST-related laws passed in March. “The Government will try to implement GST from July,” he said at the UK-India Business Council meeting in london.
However, on February 18, the Centre and States agreed on the compensation rule but fell short of finalising the crucial Bills on the GST, fuelling speculation that the Government may miss the July deadline.
Explaining the positive side of the note ban, Das said the impact of demonetisation was mostly on consumption and that was temporary. “long-term and medium-term, from the next quarter onwards, benefits and outcomes are going to be very, very positive. As the process of remonetisation progresses and it is almost near complete, any adverse effect on consumption during that quarter is not likely to spill over to next year. So that phase is over, it is behind us,” he added.
Das is hopeful that the GST is going to unleash a huge quantum of growth impulses. “The effect will be felt and once India becomes one market, there will be positive impact on growth impulses,” he said.