GST had serious defects which worsened over last five years: former finance minister

Stating that the GST had serious birth defects which became only worse over the last five years, former finance minister P Chidambaram has said the GST laws and the manner of their implementation have wrecked the economy. He stated demonetisation was the first Tughlaqi farman of the government while the Goods and Service Tax second that harmed the economy.

He mentioned ‘The GST that we have today is a complex web of many rates, conditions, exceptions and exemptions that will leave even an informed taxpayer completely bewildered. Not all registered dealers are informed taxpayers; as a result, they are at the mercy of the tax-collector.’

He said a flawed GST has led to large-scale destruction of MSMEs, a sector that contributes up to 90 per cent of the jobs in the manufacturing sector. He also said the worst consequence of the GST brought in by the government has been a complete breakdown of trust between the Centre and states.