GST about to happen soon, says PM

Wooing investors with promise of an easier business environment and stable tax regime, Prime Minister Narendra Modi today said retrospective taxation has been made a thing of the past but he is “not able to do anything” on two cases inherited from the previous government as they are “sub-judice.”

Inviting Saudi businesses to come and invest in India’s defence, energy, railway, health and agriculture sectors, Mr Modi also said that a common indirect taxation regime in form of GST (Goods and Services Tax) was “about to happen”. He, however, refrained from giving any specific timeframe.

Addressing a select group of Saudi and Indian business leaders on the last day of his two-day visit to Saudi Arabia, Mr Modi said his government has opened up many sectors to foreign investment and India stands out as a “beacon of hope” amidst global economic slowdown.

The Prime Minister further said his government was trying to strengthen the banking network in India by freeing them from non-performing assets (NPAs) of state-run electricity companies whose liabilities had gone up significantly.

Mr Modi said India has taken major policy initiatives to create favourable environment for investors besides removing administrative bottlenecks.

In this regard, he said the World Bank has placed India on 12th position in the list of countries that had ensured ease of doing business. “Today, the world is facing a very deep economic crisis and in this situation, India is a beacon of hope. Whether it is World Bank, IMF or credit rating agencies, all of them consider India one of the fastest growing economies,” he said.

Meanwhile, in a special gesture, Saudi Arabia on Sunday conferred its highest civilian honour — the King Abdulaziz Sash — on Prime Minister Narendra Modi. The award is named after Abdulaziz Al Saud, the founder of the modern Saudi state.

The Prime Minister was conferred the prestigious award by King Salman bin Abdulaziz at the Royal Court.