GST can significantly improve economic growth: Jaitley

Finance Minister Arun Jaitley Monday urged the state governments to support the Goods and Services Tax (GST) saying it can significantly improve economic growth.

During a meeting with state finance ministers, who hold the key to implementing the crucial tax reform, Jaitley said some "vexatious" issues remain that need to be addressed for implementation of the new tax regime.

"Implementation of GST has the potential to significantly improve the growth story. Many of you would recall that a decision to implement GST was taken in 2007-08 and an empowered committee was formed for building consensus on this issue," Jaitley said during the meeting attended by finance ministers of all states and union territories.

"I have been informed that on many issues convergence of views has happened and there are some vexatious issues which only need resolution. I wish and hope that these will be sorted out sooner than later," he said.

The finance minister said a consensus needed to be evolved for successful implementation of the GST.

With a view to grant greater autonomy to states, Jaitley said the funds for Centrally Sponsored Schemes would be routed through the state governments.

"Flexi funds" as part of this decision also exist to tailor the scheme implementation to meet the local requirements, he said.

"I urge all of you to use this forum for making suggestions for improving implementation of various welfare programmes of the government," Jaitley added.