Rates are likely to be rationalised and simplified under the Goods and Services Tax (GST) structure over the next one to two years, Chief Economic Adviser Arvind Subramanian told BloombergQuint in an interview.
The other big challenge, Subramanian said, will be to bring more items under the ambit of the new indirect tax regime to be launched at midnight of 30 June.
Two challenges ahead are simplification of rates, and bringing real estate, power, petroleum, natural gas and alcohol under the GST net.Arvind Subramanian, Chief Economic Adviser
Subramanian said unforeseen challenges in implementation of the new indirect tax regime will have an impact on growth. “If we have implementation challenges, sales and growth will get impacted. A lot depends on what these challenges will be and how quickly can we overcome them.”
He hopes, however, that “teething troubles” will not last more than three to six months.
(At The Quint, we question everything. Play an active role in shaping our journalism by becoming a member today.)