Union Finance Minister Nirmala Sitharaman on Tuesday emphasized that the upcoming next-generation GST reforms are looking to build a more open and transparent economy, simplify compliance, and help small businesses.
Addressing the 120th Foundation Day of City Union Bank in Tamil Nadu, the Finance Minister said that Prime Minister Narendra Modi has established a task force for the reforms, which is mandated with streamlining regulations, reducing compliance costs and developing a more nurturing environment for startups and MSMEs.
“All the banks are called upon to not only expand credit but also provide momentum for infrastructure development and ensure timely and need-based funding to MSMEs,” the Finance Minister added.
She further asserted that bringing in the unbanked section of the population to the formal banking system is the key for India to realize its vision of 'Viksit Bharat 2047' with all-round banking support to the entire nation.
“In the last 11 years, 56 crore Jan Dhan accounts have been opened, with total deposits of Rs 2.68 lakh crore. Of this, 67 per cent were opened in rural and semi-urban areas, and women hold 56 per cent of all accounts,” FM she said.
Earlier, during his Independence Day speech, PM Modi had guaranteed sweeping reforms in the Goods and Services Tax (GST) regime, calling it a "Diwali bonanza" for citizens.
According to this, the GST Council is going to meet over two days this week to discuss GST rates on more than 150 items. The council intends to streamline the structure of rates by shifting from the existing four-slab structure to a two-slab structure, shifting some of the items out of the 12 per cent and 18 per cent slabs to the 5 per cent slab or the Nil GST slab.
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