Finance Minister Arun Jaitley on Tuesday ruled out any disruption in the economy in the short-term due to the implementation of the goods and services tax (GST) and said that it would be beneficial in the medium to long run.

“I don’t think there will be any impact on growth,” he said, noting that already undeclared foods are coming into the system.

He further said that over the medium and long-term, GST, being a more efficient system, will help increase revenue. “Spending capacity of the Centre and States will increase which will have a positive impact on the GDP. The size of the formal economy will grow,” he said.

GST, which will subsume a plethora of indirect levies at the State and Central level will be rolled out, from July 1 after over a decade of preparations.

To mark its launch, the NDA government is also planning a special event on the midnight of June 30.

Briefing reporters about the launch function, the Finance Minister said it will take place at the Central Hall of Parliament. “The launch will be exactly at midnight when the switchover takes place. There will be a brief function for about an hour,” he said.

To acknowledge the efforts put in by successive governments at the Centre and States, the NDA Government is also inviting all MPs, State Finance Ministers and Chief Ministers, all members of the GST Council and previous Chairpersons of the Empowered Committee.

President Pranab Mukherjee, Prime Minsiter Narendra Modi, Speaker of the Lok Sabha, Sumitra Mahajan, and two former Prime Ministers Manmohan Singh and HD Deve Gowda have been invited to sit on the dais.

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