Finance Minister Arun Jaitley today exuded confidence that the upward movement of the global economy will also help India which has been growing at the "new normal" growth rate of 7-8 per cent.
Replying to a debate on the second batch of supplementary demands of grants in the Lok Sabha, he said the decision to bring petroleum products under the Goods and Services Tax (GST) will be taken by the GST Council.
The lower house later approved the supplementary demands envisaging a total additional expenditure of about Rs. 66,113 crore, of which net outgo would be Rs. 33,379 crore.
"When you imposed 31.5 per cent tax (including excise, VAT, CST and cascading effect), nobody remembered the Gabbar Singh Tax. Now tax rate is only 18 per cent," Mr Jaitley said.
During the election campaign in Gujarat, Congress leader Rahul Gandhi had dubbed the GST as 'Gabbar Singh Tax'.
He also assured the House that no state will lose revenue on account of implementation of GST as there is a guarantee by the Centre to compensate them for 5 years.
Referring to the global economy, the finance minister said there was a "visible reversal" and upwards movement will help India which has grown by 7-8 per cent, a new normal, in the past three-and -half years.The global economy is expected to grow by 3.6 per cent in 2017 and 3.7 per cent next year. Inflation has already come down from double digits during the UPA regime to 2-2.5 per cent and is very much within the 4 per cent limit, he said.He further said the structural reforms -- GST and demonetisation -- have temporarily slowed down the economy but they will accelerate growth in the coming years as happened after the launch of liberalisation in 1991.