Prime Minister’s Economic Advisory Council Chairperson Bibek Debroy on Monday said the implementation of the Goods and Services Tax (GST) is a process which would take more than 10 years to settle down.
“GST is a process and if we expect that the entire process will settle down in anything less than 10 years, then we are being unrealistic,” Debroy said at the annual general meeting of India International Chamber of Commerce.
He said only seven countries in the world had actually implemented the GST system in its true form out of which, five had unitary GST and only two countries, including India, had implemented a federal GST.
“There are very few countries which have implemented GST. There are around 140 countries which have implemented VAT but only seven which have implemented GST,” Debroy said.
He added that out of those seven, only two countries had implemented a federal GST, the other being Canada whose GST system is also “not perfect”.
On direct taxes front, the NITI Aayog member made a case for removal with exemptions which he said was on government agenda.
He said a task force has been set up which would look into the issue.