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Finance Minister plans to simplify GST to improve India’s business ranking

Published
today Oct 25, 2019
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The Minister of Finance Nirmala Sitharaman has announced measures to simplify the Goods and Services Tax with the aim of ameliorating India’s global ranking for ease of doing business.

The Union Finance Minister aims to simplify the GST


On Thursday, Union Finance Minister Nirmala Sitharaman announced that she aims to simplify the GST, the Press Trust of India reported. Sitharaman believes that this will improve India’s ranking in the World Bank's ease of doing business index.

"In GST, it is an ongoing process to understand where the difficulties are,” said Sitharaman, as reported by the Press Trust of India. “We are also looking at what were the glitches in using online filing of returns. So, GST is an ongoing process in improving. Even now for the next meeting, as and when it happens, we want to make sure that several steps are taken to simplify compliance."

A number of businesses, especially micro, small, and medium enterprises, have expressed difficulties over filing complex GST returns. Businesses in the jewellery sector have also been vocal about struggles with the tax system which replaced the Value Added Tax system in 2017.

India is currently ranked 63rd out of 190 countries in the World Bank's ease of doing business index for 2020, 14 places higher than in 2019. Sitharaman aims to bring India into the top 50 countries in the index. An improved ranking could attract more foreign investment to the country.

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