In an interview to PTI, Sitharaman said that the Center has started preparations on Backward Upgrade of the GST Network (GSTN).
“Only after making sure that, if it passes, I do not know if the council has passed. Sitharaman said.
The GST Council, including the Center and the States, decided to reduce the number of slabs to two in the current four last week since the launch of Goods and Services Tax (GST) on July 7, 9. Currently the size of the GST is at 5, 12, 18 and 28 percent, and the compensation for luxury and sinful goods is charged.
From September 22, the size of the GST will be charged by 5 and 18 percent on most goods and services, while an independent rate of 40 percent on ultra-lexery items and tobacco-related products.
To implement these reforms, the software system of GST (GSTN), which provides IT Backward Support for Returns Filling and Tax Payment, has to be upgraded. At the same time, businesses will also have to be upgraded from September 22 to their ERP system. “For this, three separate meetings were taken in the ministry on how long the GSTN or digital network will take. After many deliberations on such a great deal of reforms, it was decided that it should be implemented on the first day of Navratri-22 September.
“They (system) will be ready,” Sithraman asserted.
The Finance Minister also expressed confidence that the lack of GST in revenue in consumption would take care of a shortage of Rs 48,000 crore and will not affect public finance, but will definitely not affect GDP growth.
She emphasized that this use can be increased by GST improved GST reforms and better-to-better GDP growth, it can help to increase the estimated speed for financial year 26 .3..3-6..8 percent.
Asked about the consequences of the GST rate deduction on the fiscal deficit, Sitharaman said that the financial implementation of Rs 48,000 crore is a stable number on the basis of the year, but when it is implemented, the base situation changes.
“So, I think this consumption will increase from September 22. In large quantities, we can make it this year this year. So I will not see my financial deficit or my financial management. I will stick to my number (4.4 percent of GDP).” She said.
The center is estimated to have a financial deficit of 4.4 per cent of GDP or 1.6..6 LKH lakh crore of GDP during 225-6.
Last week, the all-powerful GST Council, headed by Sitharaman, approved a two-level design of 5 percent and 18 per cent tax as well as 40 per cent slabs for sinful items.
About 400 products from soap to car, shampoo and tractor and air conditioners will be low cost. Personal health and life insurance premiums will be tax free.
In the improved GST structure, most of the daily foods and grocery items will come under the GST slab, the bread, milk and cheese have not attracted taxes at all. EV and small cars will be taxed 5 percent, while other white items are 18 percent – slabs that are lower than the current rate.
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