GST Bill will hurt states 'initially', prove beneficial in long run: Raman Singh

Chhattisgarh Chief Minister Raman Singh on Monday hailed the Goods and Services Tax (GST) Bill after it was implemented in the state and said that the indirect tax reform will simplify the tax system of the nation and strengthen its economy.

Addressing the media here, Singh said that the Prima facie affects of the GST bill might hurt the states but in the long run will prove extensively beneficial.

"This is a last destination based tax. When the consumer will be sold a product, this tax will come in to scene. That is why all the states are passing the Bill. Chhattisgarh has also passed the Bill. The whole concept is a new reform for the nation. Earlier there were 16 types of tax, out of which eight were of the states and eight of the Centre," said Singh.

Asserting that everything will be done in a transparent manner, the Chief Minister added that the landmark Bill will help their state's economy grow by 2-3 percent.

"This change might affect the states in the beginning but the Centre has promised the states to assist the states for the next five years and till then, we all would have settled and vastly grown economy wise," he added.

The Chhattisgarh Assembly today unanimously ratified the GST Constitution Amendment Bill becoming the fifth state to pass the bill.

Before Chhattisgarh, Himachal, Assam, Jharkhand and Bihar became the first four states to pass the bill.

The Constitution (122nd Amendment) Bill for the roll-out of the Goods and Sevices Tax (GST) was passed earlier in August.

Finance Minister Arun Jaitley had, earlier in August, announced that the deadline for the rollout of the bill was April 1, 2017.

The GST bill, seen as single biggest tax reform in a long time, needs to be ratified by at least 15 state legislatures before the President can notify the GST council which will decide the new tax rate and other issues.