Narendra Modi rules out single-slab GST

New Delhi: Marking the first anniversary of the implementation of GST, Prime Minister Narendra Modi hailed the benefits of the tax policy and said it has helped in consolidating Indian cooperative federalism and is designed to eliminate the "inspector raj". Speaking to Swarajya Magazine, the Prime Minister dismissed Opposition's allegations that the tax policy is "too complex".

Modi, according to a part-transcript of the 45-minute interview posted by Swarajya on its website, said that it is not possible to assign one slab for all the products. "Can we have milk and Mercedes at the same rate?" he questioned.

The new tax regime, which subsumed central levies like excise duty and service tax and state taxes like VAT, is aimed at making indirect taxation "simple" while eliminating the Inspector Raj, he said. Listing the benefits of the tax policy, the PM asserted that the GST is not a complex policy as claimed by its critics. In the last one year, 48 lakh new enterprises have been registered and 11 crore returns were filed, he said.

The Prime Minister also highlighted the positive impact of the GST on logistics industry as it led to the abolishment of check-posts on state borders thus saving crucial time, resources and money; and thereby improving the productivity of the country.

Referring to the problems arising because of the implementation of GST as "teething trouble", Modi said the implementation of the reform, which merged 17 taxes and 23 cesses into one single tax, required a complete reset of one of the world's largest economic systems.

Terming GST as an "evolving system", PM Modi said that the policy is continuously revamped keeping in view the feedbacks received from state governments, people, media, etc. The Prime Minister said the GST has removed a number of "hidden taxes" and the rates for most day-to-day commodities have actually come down. "Government has reduced taxes on nearly 400 groups of items.

Around 150 groups of items have zero per cent tax rate," he said. Later in the day, the Prime Minister welcomed the first anniversary of the tax policy via a tweet by hailing it as a tool that has "brought growth, simplicity and transparency".

Rahul’s single-slab idea flawed
Rahul Gandhi has been advocating a single slab GST for India. It is a flawed idea. A single slab GST can function only in those countries where the entire population has a similar and a higher level of paying capacity. –Union minister Arun Jaitley

It has become a bad word
The design, structure, infrastructure backbone, rate or rates and implementation of GST were so flawed that it has become a bad word among business persons, traders, exporters and the common citizens –Former FM P Chidambaram

A problem since its launch
Demonetisation is a failure. People don't have confidence in banks. GST has been a problem since its implementation. –AP CM Chandrababu Naidu