GST will be rolled out from June 30 midnight: Arun Jaitley

Must be prepared for short-term challenges on GST rollout, said Jaitley

The goods and services tax (GST) will be rolled out from June 30 midnight, finance minister Arun Jaitley said on Tuesday, adding that the economy will have to face short-term challenges in implementing the biggest tax reforms since Independence.

While addressing the media in New Delhi, Jaitley said the official launch of the GST will take place on the midnight of June 30 at a function which will be organised in Central Hall of Parliament. 

President Pranab Mukherjee, who had piloted the first Constitutional Amendment Bill to bring in GST in 2011 when he was finance minister with the previous UPA regime, will share the dais with Prime Minister Narendra Modi on the occasion.

Also on dais will be former prime ministers Manmohan Singh and HD Deve Gowda, apart from Vice-President Hamid Ansari and Lok Sabha Speaker Sumitra Mahajan.

All Lok Sabha and Rajya Sabha Members of Parliament have been invited as also chief ministers and state finance ministers, Jaitley said, adding that all the members -- past and present -- chairmen of the GST Council and the Empowered Committee of State Finance Ministers have been invited.

GST, he said, over the medium to long term will lead to a rise in revenues of the Centre and states as the size of the formal economy will grow.

GST being a more efficient system will also result in better tax compliance, the finance minister stressed.

However, in the short term, "there will be some challenges" in switchover to GST, he pointed out without elaborating.

Asked about industry bodies talking about small and medium enterprises not being prepared for the switchover to GST, Jaitley said July 1 as the rollout date has been announced well in advance and so "nobody had any business not to be ready".

Besides, additional time has been given in the initial period for filing of the results, thus giving enough time to prepare for the transition, he said.

On the anti-profiteering clause in the GST law, he said the provision has been made as a deterrent which is not intended to be used unless forced to.

Here are the highlights of his address:

* Must be prepared for short-term challenges on GST rollout

* GST should have a positive impact on the GDP

* All decisions by GST Council have been taken with consensus; All states have passed GST laws except Kerala & J&K

* Indirect taxation will undergo huge change post GST rollout

* We intend to stick to FRBM & Fiscal deficit targets

* Over medium to long term, revenues of Centre, states will grow; size of the formal economy to grow too: FM.

* President Pranab Mukherjee, Vice-President, PM, Lok Sabha Speaker and former PMs Manmohan Singh and HD Deve Gowda to be on dais for GST launch

* Anti-profiteering clause in GST a deterrent which is not intended to be used unless forced to.

* Centre not considering farm loan waiver, will adhere to  fiscal targets.