GST expanded market space, reduced tax compliance burden on traders: FM

Published On: 01, Dec 2017 | Source:

Finance Minister on Friday said the (GST) has made doing business easier for by expanding the market place and reducing burden.

He further said that the two structural reforms -- and -- will benefit the economy in the medium and long-term.

"has made doing business and trade very easy. The market size for every trader has grown. Now whole country is his market," Jaitley said while responding to questions regarding the second quarter economic growth estimates.

Reversing a five-quarter slide in (GDP) growth, the economy bounced back from a three-year low to expand by 6.3 per cent in July-September as manufacturing revved up and businesses adjusted to the new tax regime.

The economic growth rate had slipped to three-year low of 5.7 per cent in the first quarter of 2017-18 financial year.

The GST, the minister said, has also reduced the compliance burden on as under the new regime a trader is not required to file multiple tax returns.

The tax rates too are being rationalised and a trader will no more be required to confront inspectors, he added.

Jaitley further said that impact of of high value currency notes of Rs 500 and Rs 1000 in November last year was limited to one or two quarters.

The impact of was limited to one quarter, mainly because of de-stocking by corporates.

"The impact was only for one quarter mainly because of destocking. That was our assessment. The (GDP) figures indicate that. Structural reforms benefit in the medium and long term. Both these steps will benefit the economy," Jaitley said.