Finance Minister Arun Jaitley on Tuesday announced that India will switch the indirect tax system to GST on the midnight of June 30 and July 1, regardless of any further preparation part of taxpayers.
"We had been saying GST will be rolled out by July 1; nobody had any business not to be ready," Jaitely said in a press conference in New Delhi.
Reacting on the speculations of GST rollout's impact of the economic growth and GDP, the finance minister confessed that 'in short term, there will be some challenges in switchover'.
"Over medium to long term, revenues of Centre, states will grow; the size of the formal economy to grow too," FM said.
He added, "Being a more efficient system which is prone to checking evasion, revenues will grow, spending capacity of Centre&state Govts will increase, consequently it should have a positive impact on the GDP.
The Good and Services Tax will be rolled out in a formal ceremony at the Central Hall of Parliament on June 30 midnight. The new tax regime will launched exactly at midnight by President Pranab Mukherjee, Vice-President, PM Modi, Lok Sabha Speaker and former PMs Manmohan Singh and HD Deve Gowda.
The presence of Manmohan Singh and HD Deve Gowda marks Modi government's recognition of previous government's efforts in making GST a reality.
Several state and central government's performed a role in GST rollout, the plan was announced by UPA in 2006. Now, all state governments except Kashmir and Kerala have ratified the act, said Jaitely.
The government has also invited MPs, CMs and state finance ministers for the roll out event.