Terming Goods and Services Tax (GST) regime as the biggest tax reform since independence, NITI Aayog CEO Amitabh Kant has expressed confident that the new tax regime would help the Indian economy to achieve 9 per cent growth rate. Kant's comments come against the backdrop of India losing the fastest growing economy tag to China for the March quarter with the gross domestic product (GDP) growth slipping to 6.1 per cent.
Kant further said that Prime Minister Narendra Modi's vision of GST implementation which is scheduled to be rolled out from July 1 will bring a big revolution in India's taxation structure. He added that GST will simplify the county’s taxation system and help deal with tax evasion cases. The GST Council has finalised tax rates on almost all goods and services. All goods and services have been put in slabs of 5, 12, 18 and 28 per cent, with the exception of gold and precious metals, which will attract 3 per cent GST, and rough diamond at 0.25 per cent GST.
India’s GDP stood at 7.1 per cent for the fiscal year 2016-17, as compared to 8 per cent in the FY16, while for the Jan-Mar quarter it stood at 6.1 per cent against 7 per cent in the previous quarter of FY17.