Hyderabad: India’s chief economic adviser Arvind Subramanian on Friday said goods and services tax (GST) may “probably" have fewer rates in the future by “collapsing" 12% and 18% tax slabs into one.

“I am confident that over the next 6-9 months the (GST) system will stabilize. It will also be a model for other countries to emulate... Then, over time, the 12% and 18% rates can probably be collapsed into one rate. So, over time, we will see fewer rates. We would not ever have one rate because that is too difficult to achieve," said Subramanian at the ICFAI Institute of Higher Learning in Hyderabad.

Admitting there were some technical glitches in the GST filing system, Subramanian said the new system is a bit “complicated" as states have different IT systems. These issues are being addressed by the GST Council,he added.

The chief economic adviser described GST implementation as a “transformational fiscal reform" that the country had not seen in the past. “The centre and every state has its own tax officials and own IT system. I can’t tell you how complicated the system is. So the fact is the transitional glitches, I think, is not surprising. Perhaps I think we could have done better," Subramanian said. “But the most important thing for the GST Council is to decide all these things and take corrective action."

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