‘No Petroleum In GST, As Of Now'

It has been a year since the Goods and Services Tax (GST) was rolled out. In an exclusive interview with Suman K. Jha of BW Businessworld, Union Finance Secretary Hasmukh Adhia says the far-reaching reforms in indirect taxation actually trundled in without the anticipated side-effects, like an initial drop in revenue or an uptick in inflation. Fuels, though, he admits, are likely to stay out of the ambit of the GST for a while. Excerpts:

- Suman K. Jha

How would you describe the journey of the GST since it was rolled out a year ago?

It’s been hectic, but rewarding. The challenge of coping with the initial glitches and removing the information gap among business people − that was something we had to cope with, but it was very exciting to do so. And at the end of the first year, we find that the results have been very, very satisfying.

Could you enumerate some of the satisfying results?

Well, first of all, we would normally expect three things to happen when GST is implemented. The first is the GDP growth rate going down, which is the experience in many countries. The second thing is, inf lation going up, which is our second worry. The third is that (the government’s) revenues may decline, because of the new system of taxation. But we are happy that in India, none of these things have happened.

There is absolutely no impact on inflation. The GDP growth rates of the last three quarters of 2017-18 are absolutely on the rise. This year too, expectations are of a rise (in the GDP). And finally, revenues have not been too bad. The average was said to be 12-13 per cent (higher) compared to the pre-GST period last year − so that’s not so bad.

And what have been the biggest lessons from the GST rollout?

There are a lot of learnings, but one important learning is that in spite of whatever preparations you make, you cannot completely rely on the technology. Technology can sometimes fail you at the last moment. So one has to keep a tab on that and always keep an alternative plan ready.

Going forward, what are the core challenges?