'In Principle, Prices Shouldn't Rise After GST': Chief Economic Adviser Arvind Subramanian To NDTV

New Delhi: In an interview to NDTV's Prannoy Roy, Chief Economic Adviser Arvind Subramanian talks about the much-awaited Goods and Services Tax Bill.

Here are the highlights of the interview:

On challenges of implementing the GST in a federal system

• Arvind Subramanian: GST in India uniquely ambitious

1. India's GST could become a 21st century standard
2. Many taxes will be rolled in one
3. GST is very messy politically

Prannoy Roy

• Is there going to be one tax rate, one GST? You talked about 3 slabs, what are they?

Arvind Subramanian

• Goods like medicines to have lower tax. 65% of goods to fall under standard GST rate and some items like luxury goods and tobacco to have higher tax.

Prannoy Roy

• Will GST implementation result in less corruption?

Arvind Subramanian

• Yes, I agree. Tax evasion and corruption will fall.
• Help 'Make In India' by making 'One India'.

Prannoy Roy

• Will GST boost India's growth rate?

Arvind Subramanian

• Simplification and uniformity will be a boost to country's growth.

Prannoy Roy

• Are prices going to go up or down?

Arvind Subramanian

• In principle, prices should not go up, taxes should not go up.
• No major rise in tax on nearly all items.

Arvind Subramanian

• Think of GST as an overall reform. With GST we are cleaning up the system. We are moving towards simpler and cleaner tax regime.