You are here: Home » PTI Stories » National » News
Business Standard

Notes ban to have long-term benefits; disruption temporary: FM

Press Trust of India  |  New Delhi 

Conceding that may create a disruption in short-term, Minister today said the impact on the economy may be seen "for a quarter or so" but relative advantages are going to be much more in the long run.

"When you switch over, it creates disruption. I don't see disruption lasting too long. You may see the impact for a quarter or so. Then when you look at next 12-15 quarters, it's certainly going to benefit," he said at the HT Leadership Summit here.



Citing a few economic trends post demonetisation, the Minister said rabi sowing this season has been higher than last year, while auto sales were a mixed bag.

"Of course, you will have some disruption created because of the switchover, in the long run, advantages are going to be huge as far as the relative cost of disruption is concerned," Jaitley said.

He further said the has been witnessing a high growth in the past two years and retained the tag of the fastest growing large economy in the world.

This year too, India would probably remain the fastest growing economy, the Minister added.

On GST, Jaitley said, its implementation cannot be delayed beyond September 17 next year due to constitutional compulsion.

"First of all, the constitution does not permit a delay in GST implementation. The notified GST on September 16 and the constitutional amendment itself says that the current indirect tax system can continue for one year, after which the GST has to come," he said.

"So, if on September 16, 2017, there is no GST, then there is no taxation in the country. So, you have a constitutional compulsion to have a Goods and Services Tax in place before September 16; otherwise the country doesn't run, and the tax is absolutely essential," the FM added.

The government intends to implement the GST from April 1, 2017, Jaitley said.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

RECOMMENDED FOR YOU

Notes ban to have long-term benefits; disruption temporary: FM

Conceding that demonetisation may create a disruption in short-term, Finance Minister Arun Jaitley today said the impact on the economy may be seen "for a quarter or so" but relative advantages are going to be much more in the long run. "When you switch over, it creates disruption. I don't see disruption lasting too long. You may see the impact for a quarter or so. Then when you look at next 12-15 quarters, it's certainly going to benefit," he said at the HT Leadership Summit here. Citing a few economic trends post demonetisation, the Minister said rabi sowing this season has been higher than last year, while auto sales were a mixed bag. "Of course, you will have some disruption created because of the switchover, in the long run, advantages are going to be huge as far as the relative cost of disruption is concerned," Jaitley said. He further said the Indian economy has been witnessing a high growth in the past two years and retained the tag of the fastest growing large economy in ... Conceding that may create a disruption in short-term, Minister today said the impact on the economy may be seen "for a quarter or so" but relative advantages are going to be much more in the long run.

"When you switch over, it creates disruption. I don't see disruption lasting too long. You may see the impact for a quarter or so. Then when you look at next 12-15 quarters, it's certainly going to benefit," he said at the HT Leadership Summit here.

Citing a few economic trends post demonetisation, the Minister said rabi sowing this season has been higher than last year, while auto sales were a mixed bag.

"Of course, you will have some disruption created because of the switchover, in the long run, advantages are going to be huge as far as the relative cost of disruption is concerned," Jaitley said.

He further said the has been witnessing a high growth in the past two years and retained the tag of the fastest growing large economy in the world.

This year too, India would probably remain the fastest growing economy, the Minister added.

On GST, Jaitley said, its implementation cannot be delayed beyond September 17 next year due to constitutional compulsion.

"First of all, the constitution does not permit a delay in GST implementation. The notified GST on September 16 and the constitutional amendment itself says that the current indirect tax system can continue for one year, after which the GST has to come," he said.

"So, if on September 16, 2017, there is no GST, then there is no taxation in the country. So, you have a constitutional compulsion to have a Goods and Services Tax in place before September 16; otherwise the country doesn't run, and the tax is absolutely essential," the FM added.

The government intends to implement the GST from April 1, 2017, Jaitley said.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

image
Business Standard
177 22

Notes ban to have long-term benefits; disruption temporary: FM

Conceding that may create a disruption in short-term, Minister today said the impact on the economy may be seen "for a quarter or so" but relative advantages are going to be much more in the long run.

"When you switch over, it creates disruption. I don't see disruption lasting too long. You may see the impact for a quarter or so. Then when you look at next 12-15 quarters, it's certainly going to benefit," he said at the HT Leadership Summit here.

Citing a few economic trends post demonetisation, the Minister said rabi sowing this season has been higher than last year, while auto sales were a mixed bag.

"Of course, you will have some disruption created because of the switchover, in the long run, advantages are going to be huge as far as the relative cost of disruption is concerned," Jaitley said.

He further said the has been witnessing a high growth in the past two years and retained the tag of the fastest growing large economy in the world.

This year too, India would probably remain the fastest growing economy, the Minister added.

On GST, Jaitley said, its implementation cannot be delayed beyond September 17 next year due to constitutional compulsion.

"First of all, the constitution does not permit a delay in GST implementation. The notified GST on September 16 and the constitutional amendment itself says that the current indirect tax system can continue for one year, after which the GST has to come," he said.

"So, if on September 16, 2017, there is no GST, then there is no taxation in the country. So, you have a constitutional compulsion to have a Goods and Services Tax in place before September 16; otherwise the country doesn't run, and the tax is absolutely essential," the FM added.

The government intends to implement the GST from April 1, 2017, Jaitley said.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

image
Business Standard
177 22

Upgrade To Premium Services

Welcome User

Business Standard is happy to inform you of the launch of "Business Standard Premium Services"

As a premium subscriber you get an across device unfettered access to a range of services which include:

  • Access Exclusive content - articles, features & opinion pieces
  • Weekly Industry/Genre specific newsletters - Choose multiple industries/genres
  • Access to 17 plus years of content archives
  • Set Stock price alerts for your portfolio and watch list and get them delivered to your e-mail box
  • End of day news alerts on 5 companies (via email)
  • NEW: Get seamless access to WSJ.com at a great price. No additional sign-up required.
 

Premium Services

In Partnership with

 

Dear Guest,

 

Welcome to the premium services of Business Standard brought to you courtesy FIS.
Kindly visit the Manage my subscription page to discover the benefits of this programme.

Enjoy Reading!
Team Business Standard