Published: Fri, November 11, 2016
Economy | By Melissa Porter

Arun Jaitley says GST needs to be implemented by next September

Arun Jaitley says GST needs to be implemented by next September

"But how much currency in the market comes back into the banking system, we will come to know only with time", he said, adding that he expected the supply of high denomination currency notes to stabilize in three-four weeks.

New Delhi, Nov 10 Finance Minister Arun Jaitley on Thursday inaugurated two-day Economic Editors' Conference-2016 in New Delhi.

The demonetisation of currency notes, the minister said, is part of the drive undertaken by the NDA government to check the menace of black money in the country.

"I must acknowledge and state that the kind of steps we have taken, we still have not got from Global agencies the full recognition of the effort we have put in", he said. "This major step will help India's credibility", Jaitley said. In yet another surprise announcement by the Narendra Modi-led NDA government, it has been revealed that the banned Rs 1,000 note will return in a new avatar.

Slamming the Congress' criticism of the Government over this development, Jaitley said, "Rahul Gandhi is a representative of that party which has not done anything to contain black money".

Many of those queuing up were salaried people who said they did not have enough small change at home to do daily shopping. Jaitley said it is only those with large amounts of undisclosed money who will have to face the consequences under existing laws.

"The new high-security Rs 500 and Rs 2,000 currency notes will soon be available in ATMs from November 11 ..."

On whether the shutdown of banks and ATMs for a day, subsequent to scrapping of the Rs 500 and Rs 1000 notes, would affect consumer sales across the country, Mr. Jaitley admitted there could be some disruption in the short term. He said that the last years of the previous regime were marked by long periods of no decisions in critical sectors of the economy.

Such group of people as mentioned in the question need not worry about such small amount of deposits up to Rs.1.5 or 2 lacs, since it would be below the taxable income.

"If the money is legitimate which had been previously withdrawn from bank or earned legally and saved and had been disclosed, there is nothing to worry about", he said.

Banks will remain open this weekend and many banks have announced longer working hours.

Though supporting the demonetization move, Chidambaram said how the government implemented its decision will decide whether it is a wise one or not.

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