GST to give momentum to 'Make in India', boost exports: Amitabh Kant

'GST is a 'game changer' for India,' said Amitabh Kant

The Goods & Services tax (GST), India's biggest tax reform since Independence would give a huge impetus to ‘Make in India’ initiative and boost exports, a top government official said here on Saturday.

“GST will benefit local manufacturing and exports. It will give a huge impetus to ‘Make in India’. There used to be a lot of taxes on the final product but, after GST, there will be one tax”, said Amitabh Kant, chief executive officer of Niti Aayog, the government think tank.

He allayed concerns that GST will fuel inflation. “I think inflation may come down even further so we should not be worrying about that.”

Terming GST a ‘game changer’ for India, Kant said the country will be a more formal economy and there will be more resources. Everybody will have to register post GST, he maintained.

“It (GST) will increase revenues for India. The country will have more resources to invest in health, education and nutrition”, said he.

The GST was launched during a midnight session of Parliament in the presence of President Pranab Mukherjee, Vice President Hamid Ansari, Prime Minister Narendra Modi and Lok Sabha Speaker Sumitra Mahajan and other dignitaries on Saturday.

Ending more than 11 years of hectic argument between the Centre and states, the GST was passed and is now set to completely transform the indirect taxation landscape in the country, involving both central and state levies.

In a departure from the normal practice, GST will be administered together by the Centre and States.