Switch over to GST may lead to short term challenges: Jaitley

GST launch on June 30 midnight

Ten days ahead of its roll out, Finance Minister Arun Jaitley Tuesday admitted the switch over to GST may lead to some short-term hiccups.

"The challenges may occur due to some technical glitches or filing problems but over medium to long term, revenues of Centre and states will grow and the size of the formal economy too will grow," Jaitley told reporters at a press conference ahead of GST launch at the midnight of June 30.

The launch will take place in the Central Hall of Parliament exactly at 12 midnight in which the president, vice president, the incumbent and two former prime ministers will be present along with other parliamentarians and officials.

Asked whether it would be a special session of Parliament, he said it would merely be a function and not a special session.

To a question on whether the switch over would initially affect the Centre's revenues, he said, on the contrary, the revenues would go up as GST would check evasion.

Jaitley however, said that if GST roll out got delayed due to some political reasons in some states, it would be a loss for traders and consumers of that state as they would have to pay taxes twice over. The businesses would not get input credit tax, he said.

He said barring Kerala and Jammu and Kashmir, all states have passed their state GST laws. Kerala is expected to pass this week.