Transition to GST will take one year: Arvind Panagariya

As the government sets the deadline of Goods and Services Tax (GST) implementation on July 1, the Niti Aayog Vice Chairman Arvind Panagariya Tuesday said the transition to the new indirect tax regime will take at least one year and it will also have initial pains.

“Transition to GST will take at least one year and it will have some growing pains,”Panagariya said here.He said there will be challenges for the government an industry both during the transition period to India’s vast indirect tax regime.

More than 11 indirect taxes are expected to be merged into GST which includes



state VAT, octroy and other local levies.Though the large enterprises have been gearing up to comply with the GST, there are a lot teething problems for small and medium enterprises. It is still not clear how the transition will impact their businesses.

The GSTN which is providing the IT infrastructure for implementation and administration of GST has said that all registered tax payers in the present system will be migrated to the GST regime by November 8.

The authorities have already started giving certificate of registration to all entities registered under the earlier laws.