As the government looks set to roll out the much-awaited Goods and Services Tax (GST) from July 1, Niti Aayog vice-chairman Arvind Panagariya struck a note of caution saying the economy will see some growing pains as it looks at a transition from the current tax system. In a statement to news agency ANI on Tuesday, Panagariya said, “Transition will take at least one year and will have some growing pains.”
Panagariya added there will be challenges for the government and the industry both as a new system is being created. Niti Aayog vice-chairman’s comments comes days after the Rajya Sabha passed four supplementary legislations to make way for the GST roll out. The four supplementary Bills that were passed in the upper house are the Central GST Bill, 2017, the Integrated GST Bill, 2017, the GST (Compensation to States) Bill, 2017 and the Union Territory GST Bill, 2017. The Lok Sabha had passed these Bill son March 29 last month. Once the Bills were passed in Rajya Sabha, Union Finance Minister Arun Jaitley had conceded that successive governments have contributed towards the one tax regime and no one person can take credit for it. “This Bill, I have no hesitation in conceding, is a collective property,” he had said in the Rajya Sabha.