Reserve Bank Deputy Governor Viral Acharya today said switch-over to GST is a key structural reform which will turn the country into a single market and make transactions easier across states.
“It is a very important structural reform for the economy to make us a nationalised market with ease of transactions across states…I think it is the kind of structural reform we should welcome,” he said.
“There will be some glitches and ups and downs….as long as the system and network is responsive to that (it is fine),” he added.
Amid fear of price rise for multiple commodities, the RBI had said in the monetary policy review earlier this month that “implementation of the GST is not expected to have a material impact on overall inflation”.
The country is slated to usher in the Goods and Services Tax from midnight today.
Consumers will have to shell out more for banking services, insurance premium payment and credit card bills, as under the GST most financial services would attract a higher tax of 18 per cent against the 15 per cent now.