President hopes govt to set up GST Council soon

Chennai, Sep 10 (PTI) With landmark Goods and ServicesTax (GST) now a law, President Pranab Mukherjee today hopedthe government will set up a GST Council soon and reducecascading effect of indirect taxes. The GST, which will transform India’s USD 2 trillioneconomy and 1.3 billion consumers into a single market for thefirst time, has been ratified by 19-20 states after Parliamentnod last month, thereby qualifying to Presidential assent, hesaid. "And I do hope the finance ministry will take appropriatesteps to set up the GST council to fix the rate because it isthe responsibility of the GST Council that one uniform rate ofgoods and services is introduced in our economy," he said atthe centenary celebrations of Karur Vysya Bank here. GST, which will replace an array of central and stateindirect taxes like excise duty, service tax and VAT, will"not only be a one uniform rate of taxes but it will also besingle point taxation not multi-point taxation and thereforethe cascading effect would not be very serious," he said. Mukherjee said the effort made over almost one and halfdecade fructified with the passage of GST legislation. "Finally with the constitutional procedures beingcomplied and constitution amendment being carried by bothHouses of Parliament and day before yesterday more than 19states, perhaps 20 states, ratified and therefore it hasqualified for Presidential assent," he said. Mukherjee said India has firmly established itself as thefastest growing large economy with a GDP growth rate of 7.3per cent in calendar year 2015. "We can say confidently that our economy has revived andour prospects are brighter as we are poised to grow at 7.5 percent in both 2016 and 2017," he said. He said India’s external sector has remained steady withcurrent account deficit improving to 1.1 per cent of GDP in2015-16 from 1.3 per cent in the previous year. Foreign exchange reserves stand at USD 365 billion. "Blessed with a normal monsoon this year, I am hopefulthat our food grain production will surpass the record of 265million tons achieved in 2013-14," he said. (MORE) PTI JD ANZMR