Next gen GST reforms will set the economy open and transparent: FM Sitharaman

Speaking at the 120th Foundation Day celebrations of Tamil Nadu-based City Union Bank on Tuesday, September 2, Finance Minister Nirmala Sitharaman said that the next generation Goods and Service Tax (GST) reforms would set an open and transparent economy. She added that this would be driven by further reduction in compliance burden and would benefit small businesses. President Droupadi Murmu was the chief guest at the event.

“Complementing this, the planned rollout of the next generation GST reforms with the planned Council meeting tomorrow and the day after, will set an economy absolutely open and transparent in the coming months and with further reduction in compliance burden, making it easier for small businesses to thrive” she said. Further adding that Prime Minister Narendra Modi recently announced the creation of a Task Force for next generation reforms with a clearer mandate to simplify regulations, lower compliance costs and also build a more enabling ecosystem for startups, Micro, Small and Medium enterprises and entrepreneurs.

In his Independence Day address, PM Modi announced big-ticket Goods and Services Tax (GST) reforms and promised a Diwali bonanza for citizens.

Sitharaman also said that if India is advancing towards its vision of Viksit Bharat 2047, then the banks are called upon to not only expand credit but also provide momentum for infrastructure development, ensure timely and need-based funding for MSMEs, bringing the unbanked into the fold of formal banking and meeting diverse requirements where the support of banking channels is vital.

“The guiding principles for this transformation must be trust, technology and transparency,” she noted.

Over the past 11 years, 56 crore Jan Dhan accounts have been opened with total deposits of Rs 2.68 lakh crore, and the majority of the account holders were women, she said. Further pointing out that Indian scheduled commercial banks have recorded a massive improvement in asset quality. Credit rating agency S&P has upgraded the country’s long-term sovereign credit rating for the first time in 18 years, she added.