Finance Minister Arun Jaitley on Friday said that traders will no longer be required to confront inspectors under the Goods and Services Tax (GST) regime. “The tax rates too are being rationalised and a trader will no more be required to confront inspectors,” the Finance Minister said while responding to questions on the second quarter economic growth.
Arun Jaitley said that the government has reduced the compliance burden on businesses by eliminating the filing of multiple forms for GST returns. “GST has made doing business and trade very easy. The market size for every trader has grown. Now the whole country is his market,” he said, adding that the disruptions caused by demonetisation and the GST were over.
The Finance Minister expressed hope that in coming quarters, the country can look for an upward trajectory. He further said that the most significant aspect of Q2’s positive result has been impacted by the growth in manufacturing.
While responding to a question on destocking, the Finance Minister said that since manufacturing has increased, it indicates that the trend of destocking and inventory drawdown has reversed. Arun Jaitley said that since March 2014, out of 13 quarters, India has clocked upwards of 7% eight times
India’s GDP growth sharply rebound to 6.3% in fiscal second quarter July-September from a three-year low in the first quarter, as businesses sprung into economic activity ahead of a condensed festive season and accelerated production to build inventory after the implementation of GST.
A sharp bounce in manufacturing growth rate at 7% in July-September from 1.2% in the preceding quarter was among the primary drivers behind the second quarter GDP growth acceleration. On the other hand, farm growth slowed in the second quarter to 1.7% from 2.3% in the preceding three-month period.