CEA :GST to have fewer tax slabs

Hyderabad Nov 25: Chief Economic Adviser (CEA) Arvind Subramanian on Friday said that the Goods and Services Tax (GST) may probably have fewer rates in the future as the 12 percent and 18 percent tax slabs would be merged into one.

He said that "I am confident that over the next six to nine months the system will stabilise. It will also be a model for other countries to emulate.Then over time, the 12 percent and 18 per cent rate can probably be collapsed into one rate. So over time, we will see fewer rates. We would not ever have one rate because that is too difficult to achieve".

The CEA made the above remarks while delivering a lecture at the ICFAI Institute of Higher Learning at Hyderabad.

He added that "The Centre and every state has its own tax officials and own IT system. I can't tell you how complicated the system is. So the fact is the transitional glitches, I think, is not surprising. Perhaps I think we could have done better.But the most important thing for the GST Council is to decide all these things and take corrective action .He said when asked about technical glitches the taxpayers were facing."