It’s a pointer towards a more mature economy: Ashok Lavasa–Business Line–01.07.2017

1. Critics have said that after demonetisation, the launch of GST will further impact growth. Your views?

• The effects of demonetisation are over and remonetisation has happened virtually completely. GST rollout was something which was on the cards. It is not a sudden event. On the contrary, it will lead to rationalisation of taxes, simplification of procedures and also make the compliance mechanism technology-driven and taxpayer-friendly. All these are pointers towards a more mature economy. The industry and businesses have been asking for simpler procedures. GST will improve ease of doing business — both between businesses and between businesses and the government.

1. Do you think it will help the economy?

• Certainly, as the taxation regime will become more transparent and easy to administer. I feel that given the nature of the change and its far reaching consequences on trade and manufacturing, it is bound to have a healthy impact on economic growth.

1. Are industry and government fully prepared for the GST rollout?

• There is a great deal of preparedness, both prior to the rollout of GST on July 1 and on the part of the government to deal with issues that may come up during its implementation later.
• When such a mammoth exercise is undertaken that involves such fundamental transformation, there could be issues that do come up. Whether they are on account of lack of understanding on the part of people or due to some technical issue, the system is geared to handle these eventualities.

1. What about any last minute glitches that could impact a smooth rollout of the new levy?

• All procedures for GST have been finalised and have been disseminated widely through major outreach programmes by the government as well as private parties including industry chambers.
• We are also using platforms such as Twitter to respond to doubts. As far as the technological platform is concerned, the GST Network is also adequately prepared.
• It has conducted various kinds of stress tests and trials. It has also registered a majority of businesses for GST. Both the Centre and State governments are also informing citizens about the implication of taxes on various commodities. So I think we have tried to do our best.

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