New Delhi, April 11: Niti Aayog Vice Chairman Arvind Panagariya on Tuesday said that transition phase for good and service tax will be at least one year and the tax payers may even feel initial pains.
Panagariya said, “Transition to GST will take at least one year and it will have some growing pains.”
He also said that it will be challenging for the government and industry to levy the new regime during the transition period, as there are many indirect taxes in the country.
The GST aims to merge more than 11 indirect taxes including state VAT, octroy and other local levies.
Meanwhile large enterprises are already gearing up to comply with the GST, there is a lot of confusion for impact of GST on small and medium enterprises.
The GSTN has also said that all registered tax payers in the present system will be migrated to the GST regime by November 8.
Finance Ministry Arun Jaitley has repeatedly said that government wants to implement the new tax reformation from July 1 while the opposition parties had demanded the center to grant more time to industries for getting prepared for GST.
The GST bills are passed by the Parliament and the tax regime is all set to be implemented from July 1.