NEW DELHI: In an interview to NDTV’s Prannoy Roy, Chief Economic Adviser Arvind Subramanian talks about the much-awaited Goods and Services Tax Bill.
Here are the highlights of the interview:
On challenges of implementing the GST in a federal system
- Arvind Subramanian: GST in India uniquely ambitious
- India’s GST could become a 21st century standard
- Many taxes will be rolled in one
- GST is very messy politically
- Is there going to be one tax rate, one GST? You talked about 3 slabs, what are they?
- Goods like medicines to have lower tax. 65% of goods to fall under standard GST rate and some items like luxury goods and tobacco to have higher tax.
- Will GST implementation result in less corruption?
- Yes, I agree. Tax evasion and corruption will fall.
- Help ‘Make In India’ by making ‘One India’.
- Will GST boost India’s growth rate?
- Simplification and uniformity will be a boost to country’s growth.
- Are prices going to go up or down?
- In principle, prices should not go up, taxes should not go up.
- No major rise in tax on nearly all items.
- Think of GST as an overall reform.With GST we are cleaning up the system. We are moving towards simpler and cleaner tax regime.