GST Along with Bankruptcy Law –
The government has been trying to implement two significant economic schemes before the end of 2017 fiscal year namely Bankruptcy law and even more crucial economic reform of Goods and Services Tax. The association has remarked several points regarding this and also assured that there is another law called bankruptcy code under construction.
Economic Affairs Secretary Shaktikanta Das said, “We have a definite roadmap to implement the bankruptcy law. Ministry of corporate affairs is working on it. The law ministry and the legislative department have played a very significant role in finalizing the legislation.”
“The GST, bankruptcy law together with amendments to the arbitration law, SARFESAI, DRT related laws and the company law have the potential of creating a very vibrant and dynamic economy in India.” he further added. Along with this, he said that “Our expectation is that the bankruptcy law together with the GST will really bring in a lot of dynamism and efficiency into the Indian economy, On GST rate structure, he said, “The rate structure has been prepared based on a very practical basis. The rate has to be necessarily revenue neutral, and we cannot have a rate structure where the governments run huge deficits and consequently both state and Central governments will have to go and borrow the money from the market.”
Finally, he acknowledged that “GST will bring down rates and the debate in certain sections that GST will lead to an increase in prices is “completely misplaced”. He said currently central excise is at 12.5%, state VAT is about 14-14.5% and together they are about 26-27% and in certain goods, it is at 30%.”
