GST to add 2% to GDP, must implement from next fiscal: Adi Godrej

The government must roll out Goods & Services Tax (GST) from next fiscal as it is likely to boost economic growth by 2 per cent, Godrej Group Chairman Adi Godrej said.

"Other things being equal the implementation of GST (from April 2016) will add 2 per cent to the GDP growth rate. This will also benefit manufacturing and exports," Godrej said.

GST to add 2% to GDP, must implement from next fiscal: Adi Godrej
Besides, Godrej said the Minimum Alternate Tax (MAT) rate, which currently stands at 18.5 per cent, must be halved, added the media report.

"This will enable companies to take greater advantage of the benefits of the incentives and invest more in manufacturing. This will also increase growth in GDP," he added.

Finance Minister Arun Jaitley will unveil the Budget for 2015-16 on February 28.

Meanwhile, PHD Chamber of Commerce said that Jaitley must unveil measures to generate jobs, stimulate demand and spur investments to boost economic growth.

Besides, it urged the government to promote collateral free lending for MSMEs, where appropriate qualitative grading of promoters and projects should be available.

It also urged the Government to provide a clear roadmap on Goods & Services Tax (GST), and direct the divestment proceeds towards infrastructure sector.

Government must end subsidies and the Direct Benefit Transfer scheme must be promoted for individuals, it said.

Read more about: gst
Story first published: Wednesday, February 18, 2015, 9:00 [IST]
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