Promise of GST not utilised due to multiple slabs, excess authority to Centre: Subhash Garg
Calling GST as a “big reform” despite poor implementation and compromises, former economic affairs secretary Subhash Garg said the new indirect tax system was not a hurried job at all. “We had a very messed up, convoluted and fragmented indirect tax system. GST was into making for a long time. I had been a party to many deliberations. So I would not say that it was a hurried job,” Garg told Fortune India on the sidelines of interaction on his recently launched book, The $10 Trillion Dream. Pointing out that some compromises like multiple rate slabs and granting over authority to the Centre had to be made to bring various stakeholders on board, Garg said GST was still a great reform. He also, meanwhile, maintains that due to the compromises the promise of the GST has not been utilised fully resulting in current revenues at 11–11.5% compared with revenue neutral rate of 15.5%, among others.