He said that the whole system of GST is "self-regulating and it will become increasingly hard to evade taxes" under the new indirect tax regime that was heading for a July 1 roll-out.
With the roll out of the "revolutionary" Goods and Services Tax bill scheduled for July 1, the ASSOCHAM has perceived this as the present government's "biggest achievement", facilitating digitisation, financial and inclusion, while public investment on railways and power distribution infrastructure is set to change the structure of the economy, the chamber said.
Congress leader Sharad Ranpise meanwhile questioned the government to give a detailed response on what recommendations had it implemented of the Subodh Kumar-led Maharashtra Economic Development Committee report on GST. In view of the operational issues, Mr. Punnoth said, the government and the GST Council should delay the rollout.
"We are completely shocked as the GST Council has made a decision to tax cinemas at the prohibitive rate of 28%, while we had expected the GST rate for cinemas to be either 5% or at worst 8%", stated a press release by Deepak Asher, president, MAI. Bigger sedans (engine size 1,500cc and length 4,000 cm) and SUVs (engine size 1,500cc and ground clearance 170mm) may see lower taxation and eventually reduction in vehicle prices, despite 15% cess above the base GST rate of 28%.
Some items, notably potable alcohol and petroleum products, will be outside its purview for now.
India's foreign exchange reserves have touched an impressive high of $372 billion, boosting the rupee value, which is helping tame inflation further, it added.
Thanks to several measures to open up the Foreign Direct Investment (FDI) regime in key areas like defence, insurance, infrastructure, the country has received record net FDI of Dollars 100 billion in the last three years, while foreign funds are pumping in huge liquidity in the stock market.
"Riding on ample liquidity and confidence of the global fund managers, India's market capitalisation has crossed a massive $2 trillion, so much so that some kind of caution is needed to handle such inflows", Assocham said.