GST, demonetisation will help states like Odisha: Arun Jaitley

Bhubaneswar: Union Finance minister Arun Jaitley today said the recent currency changes, and also the proposed Goods and Services Tax (GST) would eventually benefit the whole country and certainly a state like Odisha.

Addressing the ‘Make in Odisha’ Conclave in Bhubaneswar, Jaitley said “India of course has remained one of the finest islands of growth world over. Last two years we have been the fastest growing major economy of the world and I have no doubt that we would continue to do so this year also. But the challenge for India is how to look ahead as far as the country is concerned. Therefore, some changes which are now taking place will look as difficult challenges in the immediate context but their potential for the future to bring about significant changes in the country is extremely important. I do believe that two initiatives – and I would thank the Odisha CM and his colleagues for being supportive on both those initiatives – the recent currency changes, and also the proposed GST would eventually benefit the whole country and certainly a state like Odisha. If you look at the long term impact beyond one or two quarters, once these two decisions are effectively implemented, notwithstanding the painful process of implementation itself, what would really be the impact of these decisions?  As far as GST is concerned, the whole country would be one big market. There would be seamless flow of goods and services across the country. This itself would now entail a system where leakages will be blocked, a far more efficient tax system of indirect taxation would come into existence and obviously over a period of time it will not only help in the growth process but also help a consuming state like Odisha. Tax evasion will increasingly become extremely difficult because some limb of the transaction from its inception till the sale – the whole process of manufacturing, the whole journey of a particular product – will be captured somewhere on the IT backbone which is being developed for this process.”