Finance Minister Arun Jaitley has said that demonetisation and GST will make cash transactions a lot more difficult and lead to greater compliance as well as expansion of tax base.
As per reports, the government has come out with laws to contain overseas black money as well as those dealing with domestic black money and cracking down on shell companies.
Commenting on the issue, Finance Minister Arun Jaitley told the media, "The country had reconciled to a Indian normal -- a very large number of tax non-compliance and very large amount of transaction which took place outside the system."
"There was almost a helplessness in trying to deal with the situation. Every year through the Finance Bill we would announce some changes which at best had a marginal impact. I think the lasting impact of those marginal changes was not very significant," he added.
"And therefore, steps had to be taken in order to make a very significant impact. Seen in totality, the steps taken by the government will have a "great long term impact" and a "substantial ethical rationale" behind it," he further said.