PM Modi says GST will weed out black money

New Delhi: A day after launching the Goods and Services Tax (GST), Prime Minister Narendra Modi on Saturday reiterated that the new tax regime “will weed out black money.” He, however, did not spell out how.

Addressing a huge gathering at the Indira Gandhi Indoor Stadium on the occasion of the foundation day of the Institute of Chartered Accountants of India, PM Modi urged chartered accountants to play a constructive role in the implementation of GST.

“New India” is waiting and CAs have a big responsibility as they form a key pillar of the Indian economy, Mr Modi said.

“Just like doctors don’t want people to be ill to get more business, chartered accountants too need to safeguard society’s economic health,” the Prime Minister added.

While stating that the fight against corruption and black money “will continue” and that “tax defaulters will not be spared,” the Prime Minister added that his government is committed to taking even tougher action against those who help hide black money.

Amidst chants of “Modi, Modi”, the Prime Minister told the CAs, “If you know anyone with black money, warn them that they would not be spared.” The PM said that data collated after  demonetisation — which he called the “biggest step to counter corruption and black money” — revealed that over 3 lakh registered companies indulged in suspected dealings.”

Blending the “war against corruption” with nationalism, the Prime Minister, while claiming that his government has cancelled the registration of over 1 lakh companies and more than 37,000 shell firms have been identified so far, added that the ability to shut down companies “comes from the strength of being a patriotic Indian.” Political implications of strong moves against defaulters don’t bother me, he said.

In a reference to the Opposition, the Prime Minister said, “People who do politics cannot take such decisions, only people who live for the nation can take such decisions.”

CAs, he said, should take a pledge to bring people in the tax bracket rather than boasting about the number of clients they have saved from paying taxes.

“Your signature is more powerful than that of the Prime Minister… the government believes the accounts signed by you,” he said and exhorted them to take charge and bring their clients on to the path of honesty.