Goods and Services Tax aims to bring informal sector under the ambit of formal economy

The introduction of Goods and Services Tax (GST) aims to bring the informal sector under the ambit of formal economy. The GST framework captures every transaction from end to end, recording them from source to final destination, leaving no room for uncertainty while promoting transparency and corruption-free business environment, said Mr. Piyush Goyal, Minister of State (I/C), Power, Coal, New & Renewable Energy and Mines, Government of India.

Alluding to the advantages of bringing sectors under a formal regime, Mr. Goyal said that GST would enhance the tax base eventually leading to reduction in tax rates. The increased revenue from taxes would enable targeted spending towards betterment of poor, old, children and women and other deprived sections of the society. Besides, the government would be able to develop better infrastructure.

 

Mr. Goyal said that GST would create a level playing field by removing discrepancies from the system with the help of technology. Earlier, with multiple taxes in place, it was easier to evade taxes but the GST framework makes it necessary for businessmen to record each transaction. He also urged women to promote and become the harbingers of GST.

Referring to different tax slabs in GST, Mr. Goyal said that one tax for the entire range of goods and services would have created an imbalance in the economy by making common goods expensive. Therefore, with different tax rates, the government attempted to keep the tax on common goods lower or equal to earlier regime wherever possible to keep them affordable.

Ms. Vasvi Bharat Ram, President, FLO, said, With this session, we aim to empower women with enhanced knowledge on GST and the implementation of it in business as also daily lives. This is in sync with the vision of FLO, which is to Change Lives - Women Empowering Women as also with our mission to promote economic empowerment and equal opportunity for women.

Ms. Bharat Ram said, FLO believes that the resources and strengths of women need to be channelized, to help their full potential. It acts as a catalyst for the social and economic advancement of women and society at large. Educational and vocational training programmes, talks, seminars, panel discussions and workshops on a vast range of subjects especially concerning women and business are a part of this process.

She added, While we are happy that goods such as bindi, sindoor, kajal, bangles, which are specifically used by women, come under no tax slot. But, sanitary products, that are useful to every woman but is not accessible as widely has been made tougher to access because of its hiked up tax rate. This is something that we would request the government to look into as sanitary pads are not a luxury, it is a necessity for women.

Powered by Capital Market - Live News