‘Govt focus will now shift on ensuring transmission of rate cuts to consumers’

Finance minister says India will eventually move towards one GST rate, but added that such transition does not appear to be feasible in the immediate future

- R Sukumar and Rajeev Jayaswal

Increased consumption may well help the government end the financial year with no impact on revenue on account of the rationalisation in GST rates, finance minister Nirmala Sitharaman said. In an interview, she added that her focus will now shift to ensuring the transmission of the rate cuts, which, while not being motivated by the tariffs levelled by the US on Indian exports, could help offset their impact. Edited excerpts:

You made some changes in the income tax regime in the budget. Big ones...

... And the new income tax bill and the rationalisation in GST, taking it closer to its original idea. So, you have a direct tax reform and an indirect tax reform, which by itself is a staggering achievement, in this short of a period because these things usually proceed ata glacial place. So, what’s next?

What's next is September 22. I will have to see how it plays out on the ground; how people benefit from it.

There’s a general feeling that bureaucracy operates ata glacial speed, does not deliver; does not understand the mandate with which a government is formed; and that therefore most promises made do not see the light of day within that term.

Here is a case of bureaucracy, across India, working simultaneously, with clarity...

I enjoyed this phase. It was rigorous. It was intense. It was like taking a tough exam. And passing. For the entire team. Whether this benefits people is a different exam —and I will take that too.

The rejuvenation I feel... that’s the reward for the sweat and toil, I suppose.

You've fundamentally changed the tax architecture, direct and indirect taxes in less than a year. It’s been spoken of for years...

Yes, Iam very happy with the teams, both direct and indirect taxes, working with me.

Would you put this down as your biggest achievement as finance minister?