NEW DELHI: The constant amendment in GST and frequent change of rate is not good for the economy, Fifteenth finance commission chairman NK Singh said.
"(GST) has resulted in a clatter of taxation which has made compliance so difficult for small businesses," Singh said.
He was speaking on the launch of book "In Service of the Republic", written by Former Finance Secretary Vijay Kelkar and economist Ajay Shah.
The book has argued that a single GST rate of 10 per cent applied to 70 per cent of India’s produce would have earned the Centre and States 7 per cent of the country’s GDP and would have been easier to administer.
Interestingly, the NDA Government has said that multiple rates were best for the country. In fact late finance minister Arun Jaitley had said: “a 'hawai chappal' and a Mercedes car cannot be taxed at the same rate.”
Talking of the present context, Vijay Kelkar said that growth is the most important factor to focus upon.
"Given the present situation of our economy, growth is far more important than anything else in meeting various objectives," Vijay Kelkar said.
The book which talks about public policy-making at length, argues of minimum intervention by the government.
"At the current level of state capability in India, it is better to do fewer things but do them well. The way forward lies in doing things less," Ajay Shah said.