FICCI seeks speedy implementation of GST to curb problem of black money

Industry body FICCI has sought expeditious implementation of the proposed goods and service tax (GST) saying it could also help curb the cash economy in the country, and hence the problem of black money. 

"GST is a perfect platform to unearth black money....if somebody has to evade taxes under GST, buyer and seller both have to connive. Therefore, avenues for tax evasion will be much lesser," Sachin Menon, co-chairman, FICCI task force on GST, said. 

Efficient sale and purchase tracking under the GST will ensure that no transaction goes unrecorded and this will limit generation of black money, FICCI study said. 

The industry body supported a broad-based tax structure with limited exemptions ahead of the meeting of the empowered committee of state finance ministers on GST with union finance minister Pranab Mukherjee on Friday. 

"The proposed rates of 20%, 16% and 12% are good enough to begin with, but these would need to be gradually brought down to a uniform level of 12%," FICCI President Harsh Mariwala said. 

Mariwala also supported the need for a broad-based GST that encompasses all sectors of the economy within its ambit saying that exclusion of certain sectors would be detrimental to the structure and also push up the tax rate. 

"The proposed exclusion of sectors, such as petroleum, natural gas, real estate, alcohol and power generation, would result in significant adverse implications for the sectors which consume these goods," Mariwala said.