Demonetisation, GST will reduce cash in system: Finance Minister

New Delhi : Finance Minister Arun Jaitley on Saturday said that generation of cash will become difficult as a result of demonetization coupled with the implementation of the Goods and Services Tax (GST).

"Demonetisation coupled with the implementation of Goods and Services Tax (GST) regime will make the generation of cash a lot more difficult, help towards the objective by creating greater compliance and increasing digitization," he said at the "Delhi Economics Conclave 2017" here organized by the Finance Ministry. 

Jaitley said that both had led to an increase in digital transactions and a wider taxpayer base for both direct and indirect taxes.

"Signs of increasing digitization are already visible in terms of expansion of direct and indirect taxpayer base," he noted.

Besides, Jaitley said three steps -- penalizing those who had stashed illegal money abroad, benami property law and Bankruptcy and Insolvency Code -- attacked the black money in the system.