Don’t rush to implement GST, says N K Singh  

JD(U)’S N K Singh and nominated member and former RBI Governor C Rangarajan on Tuesday cautioned the government against acting in haste while implementing the GST (goods and services tax), scheduled to be enforced from April 1, 2010.

Participating in the Budget discussion, Singh said, “I recognise this is an important step... Let me say that nothing would be more terrible than to hastily introduce an ill-conceived GST... It is better to plan and introduce more carefully.”

Also speaking on the Budget, Rangarajan said, “I think the introduction of GST is important but the introduction of GST without adequate preparation would have serious consequences, and, therefore, it is not possible, probably, to introduce it by April 2010.”

“That does not matter. You may introduce it by April, 2011. There are constitutional pre-requisites which have to be modified, and, therefore, we may have to wait. But, I think, in the case of GST, there is a dual system. One of the most important and complicating problems is the inter-state transactions, and unless we have built up adequate information and database to decide on this, it would be premature to introduce GST,” said Rangarajan, who is former chairman of the PM’s economic advisory council.

Source : Indian Express - New Delhi, India, dated 15/07/2009