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Key Points

Renowned economist Surjit Bhalla has praised India's Goods and Services Tax (GST) as a landmark economic achievement of the past decade. The tax reform has dramatically improved economic transparency by bringing more businesses into the formal sector and increasing tax revenues. Bhalla highlighted GST's role in transforming India's economic landscape, noting its contribution to the country's rapid growth and global economic standing. The economist also emphasized the potential for continued reforms to further strengthen India's economic framework.

Key Points: Surjit Bhalla Hails GST as India's Decade-Defining Economic Reform

  • GST has significantly increased tax revenue and formal economic participation
  • India now ranks as world's fourth-largest fastest-growing economy
  • Tax reforms have expanded business compliance and transparency
  • Enhanced economic policies contribute to national growth trajectory
2 min read

GST one of India's biggest success stories in a decade: Surjit Bhalla (IANS Exclusive)

Renowned economist Surjit Bhalla highlights GST's transformative impact on India's formal economy, tax compliance, and global economic standing.

"It's one of the big success stories over the last ten years - Surjit Bhalla"

New Delhi, July 1

India's Goods and Services Tax (GST) system has emerged as one of the biggest success stories in the last decade, reflecting a growing formal economy and rising compliance, noted economist and former IMF Executive Director, Dr Surjit Bhalla, said on Tuesday.

In an exclusive interaction with IANS, Bhalla highlighted that GST has not only increased tax revenue significantly but has also brought more businesses and individuals under the formal tax net.

"The GST has performed well, and more individuals have entered the formal tax net. That's a good sign," he said.

Bhalla told IANS that the Indian economy has done "reasonably well" since the implementation of GST in 2017-18, replacing the earlier value-added tax system.

"It's one of the big success stories over the last ten years," Bhalla said, attributing the positive outcomes to stronger compliance, greater efficiency, and broader coverage of the tax base.

"Both within and outside the government, it is acknowledged that the economy has done reasonably well, and GST, having replaced the value-added tax, has contributed positively," the famous economist said.

While Bhalla acknowledged the potential for further reforms in GST to make it simpler and more growth-friendly, he emphasised that the current tax structure has already laid a strong foundation for India's future economic trajectory.

Commenting on India's rising global stature, Bhalla pointed out that India has now become the fourth-largest economy in the world and is the fastest-growing among major economies.

He said that with improved education and healthcare leading to higher productivity, India is well-positioned to achieve even stronger growth in the coming years.

On the recently launched Operation Sindhu Sudarshan, Bhalla called it a very positive step, adding that enhanced defence preparedness contributes to both national security and economic confidence.

"Defence is a core national priority. More defence spending leads to more security and strengthens the economy. This operation will help both defence preparedness and economic confidence," he maintained.

- IANS

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Reader Comments

P
Priya S
While GST is good in principle, the multiple tax slabs create confusion. Why can't we have just 2-3 rates like other successful GST countries? The compliance burden is still heavy for small businesses.
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Aman W
GST has brought transparency but prices haven't come down as promised. My monthly grocery bill is still the same. Government should focus on passing benefits to common people.
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Shreya B
As a CA, I've seen firsthand how GST has increased tax compliance. Many small businesses who were operating in cash have now come into the formal system. This is great for our economy in the long run! 💯
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Varun X
The GST portal still needs improvement. Frequent technical glitches during return filing cause unnecessary stress. Hope the government invests more in tech infrastructure to make the process smoother.
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Nisha Z
GST has helped create a unified national market. Earlier, transporting goods across states was a tax nightmare. Now our logistics business runs much more efficiently. Big thumbs up from me! 👍
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Karan T
The initial GST rollout was chaotic, but credit where it's due - the system has stabilized now. Increased tax revenues mean better infrastructure and services for citizens. Long-term benefits outweigh the early hiccups.

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