‘Cannot anticipate glitches after rollout’

Claims that GST will boost the nation’s economic growth by 1.5 percentage points are “rubbish”, NITI Aayog member and economist Bibek Debroy said.

The remarks contrast with finance minister Arun Jaitley’s comments that the tax reform will help increase growth in gross domestic product by 1-2 percentage points.

PM Narendra Modi is the chairman of NITI Aayog, which suggests policy for economic growth and development. “Such speculations are based on the assessment of the 13th Finance Commission, which gave that figure for an ideal GST. We are nowhere near an ideal GST,” Debroy said.

Asked about Jaitley’s and revenue secretary HasmukhAdhia’s claims, he said, “I won’t contradict them.” With petroleum, electricity, alcohol and other products kept out of the purview of GST, gains to GDP will not accrue in the same proportion as projected, Debroy said. Opposition parties have criticised the government for pushing ahead with the tax without adequate preparations. But Debroy defended the rollout. “This is not a perfect GST but the country could have waited another 17 years for a perfect GST. Hopefully the glitches will lead to tweaks.”

“What bothers me most is multiple registrations in different states. However good the intentions of the government, you cannot anticipate all the glitches.”