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Won't blink against Opposition, firms opposing GST to avoid I-T: Jaitley

Jaitley stressed on how the new GST regime would make economy more efficient

IANS  |  Chennai 

Arun Jaitley, Jaitley
Union Minister for Finance, Corporate Affairs and Defence, Arun Jaitley meets with the Industrialists and Heads of various Chambers, in Chennai on Sunday. (Photo: PTI)

Union Finance Minister on Sunday said the government would not blink first against the if there are larger national interests involved.

Addressing a Conclave in Chennai, he also said that the was not an easy reform to implement and there are people who wanted to stall reforms.

"If reform is of national interest, then do not blink. There are people who would trip you and will never allow reforms," Jaitley said.

Stressing that regime will make the economy more efficient, he said that the industries that are opposing the reform are doing it to avoid paying

Citing Jammu & Kashmir that also agreed to implement seven days after others joined. Jaitley said it was the power of economic integration that forced the state to join

The state's traders pointed out to their government that people would buy goods from Punjab where it would be cheaper than their own state due to the absence of input credit if they are not part of regime.

Jaitley also said that within the Council there was cooperative federalism whereas outside people opposed the reform, but due to the people's support for GST, the opponents had to backtrack.

On the ease of getting the input credit. Jaitley said those who file their returns honestly will get it automatically and there will not be a need to interact with any official.

As to the existence of multiple rates, he said it was to prevent inflationary pressure.

"We kept the rates on food items at nil or in the lower slabs," Jaitley added.

Jaitley also said the next generation would be horrified to note the kind of indirect taxation -multiple taxes across the states - that the country had prior to

He said interface with a official will lead to corruption and many businessmen thought it is better to be outside the bracket and the net result was that India became a non-compliant nation.

According to him, following the regime, the base would increase while the weighted average rate would come down.

Jaitley said Prime Minister has forced major changes during the last three years, creating an environment that is business friendly.

He also added that the days of bankers losing sleep over after borrowers willfully not repaying their loans running into thousands of crore are over, with the government bringing in the Insolvency and Bankruptcy Code.

Jaitley also promised that the Council would consider the representations made to him by the industry bodies.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)