Former reserve bank of India governor Raghuram Rajan stated that the goods and service tax is not that hard to understand and to fix although he made a counter-attack on the implementation of demonetization.
He mentioned that “On the Goods and Services Tax, we will figure it out eventually. It will be nice if we could implement much better than we do. But it’s (GST) not an unfixable problem. We can work on it. I wouldn’t give up hope at this point on that.”
He pointed out that tendering high value illegal was not a solution as it constituted 87.5 of all the currency value in the economy of India. He clearly mentioned that “I didn’t ever say that I wasn’t consulted (on demonetisation). In fact, I have made it quite clear that we were consulted and we didn’t think it was a good idea.”
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This was the first time when the former governor of RBI has come up to discuss on the issue on which whole of India currently battling towards indefinite time period. Even some of the government officials stated that the goods and services tax will not settle down before 10 years in India.
It is well clear that even major economists and scholars have sorted out that the implementation of goods and services tax was inappropriate. In the latest, Raghuram Rajan has indicated that the government must try all sorts of regulatory measures to curb tax evasion happening under the GST reign.
