Despite setbacks in the monsoon session of parliament, India’s Prime Minister Narendra Modi is optimistic about rolling out General Sales Tax, or GST as it is popularly known.
At present, every state has their own Value Added Tax regime with local octroi, coupled with a Central VAT, which leads to immense confusion in interstate trade and commerce.
To do away with this problem a GST was proposed a few years back, However, like all good things, this has been kicked around from one state to another and the centre, refusing to see the light of day. Even this monsoon session, when it was proposed to be tabled and passed, the opposition parties prevented it.
Speaking to potential global investors at the Indo-German summit, with German Chancellor Angela Merkel among his audience, Modi expressed confidence at the GST being implemented by next year. He also re-iterated India’s comittment for a favourable commercial environment, and said, “Never before is India so well prepared to absorb talent, technology and investment from outside.”
