In the monsoon session of the Parliament on Thursday many legislative changes were included to ease businesses of MSME owners, Finance Minister Piyush Goyal said. Not only that, four amendment bills related to GST were also passed in Lok Sabha.
The bills were Central GST (Amendment) Bill, Integrated GST (Amendment) Bill, GST (Compensation to States) Amendment Bill and Union Territory GST (Amendment) Bill.
Impact on growth
Piyush Goyal stated that tax slabs for more goods could be reduced if the revenue increased and the economy formalized. Bearing in mind the growth forecast projected by IMF Mr.Goyal said, ‘I think India’s economic growth will be better than this forecast’.
IMF forecasts growth to rise at 7.3% in fiscal year 2018/19 and at 7.5% for the next fiscal year. The report cited strengthened investments and robust private consumption to drive growth.
‘Stability-oriented macroeconomic policies and progress on structural reforms continue to bear fruit in the country,’ the report said referring to demonetization and GST.
GST implementation
The report mentioned that revenue shortfall is due to issues in GST implementation could lead to domestic risks. ‘Domestic risks pertain to tax revenue shortfalls related to continued GST implementation issues’, the report said.
This complication was debated in the Parliament. Senior Congress leader Mallikarjun Kharge said that the government lags behind in successful GST implementation. ‘More than 50,000 MSME industries closed down in Tamil Nadu alone due to faulty implementation of GST,’ he stated