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Adi Godrej Calls ‘Delay GST’ Camp ‘Tax Evaders’

GST will reduce tax evasion, increase government revenue, Godrej says.

Billionaire Adi Godrej, chairman of the Godrej Group, in Mumbai, India (Photographer: Dhiraj Singh/Bloomberg)
Billionaire Adi Godrej, chairman of the Godrej Group, in Mumbai, India (Photographer: Dhiraj Singh/Bloomberg)

Veteran industrialist Adi Godrej said that those expressing concerns over the Goods and Services Tax (GST) and calling for postponement of its implementation are mainly tax evaders.

The chairman of the Godrej Group termed suggestions in industry and business quarters that the GST rollout be pushed to October 1, 2017 from July 1, 2017 as “ridiculous”.

“Everybody has plenty of time to prepare (for the new tax regime). Earlier it was to be April 1, now it's July 1. I saw the statement by P Chidambaram (former finance minister) to that effect (calling for pushing the GST rollout to October 1). But I think it will be ridiculous,’’ Godrej told PTI.

First of all, the constitutional amendment expires by September. So, we should not postpone it, and the various people who are asking for postponement are mainly the people who are evading taxes at present. So, they want to avoid getting into the net.
Adi Godrej, Chairman, Godrej Group

As for whether there are any concerns or challenges vis-a-vis GST, Godrej said, “No major concerns. The only people who are expressing concerns, the only people who want postponement are the ones who are, to my mind, involved in tax evasion.”

Godrej stressed that GST would be good for the country and its introduction from July 1 would lead to several advantages for the Indian economy.

“First of all, evasion of indirect taxes will become very difficult. So, people will be compliant, that means government revenue will go up because evasion will come down a lot,” he said.

Godrej added, “I expect the (tax) rates to be lower than in the past. That will mean benefit for consumers and consumption will go up and therefore there will be growth. Overall, I expect the Indian GDP growth to improve by 1.5 to 2 percentage points.”

On GST proposing four rates of 5, 12, 18 and 28 percent, he said it's well-formulated.

“I know that there are a lot of people who are complaining but some people don't understand too well. Of course, we are still awaiting the final rates on each item that will come only in May,” Godrej added.