Ex-CIA Arvind Subramanian Reveals Shocking GST Insights: “I Used to Message Jaitley 10 Times a Day”

Former Chief Economic Adviser (CEA) Arvind Subramanian has clarified that his resignation was not due to any friction with the government but simply the natural conclusion of his tenure. While acknowledging some ideological differences, he stressed that they were not the reason for stepping down. Subramanian shared these insights during a discussion on his book, A Sixth of Humanity.

Ten Messages a Day to Arun Jaitley
Reflecting on the GST rollout, Subramanian revealed the intensity of his involvement: “During GST implementation, I would message Arun Jaitley ten times a day, urging him that the 28% slab should never exist. I recommended a simpler structure with a small 6-8% slab, a 15-16% slab, and a higher 40% slab only for sin goods like tobacco and cigarettes.”

He expressed disappointment over GST’s complex structure, noting that his recommendation for three tax slabs eventually gave way to 10-12 slabs. Subramanian admitted that while the complexity was frustrating, it was part and parcel of an adviser’s role, highlighting the limits of influence a consultant holds.

Role and Limitations of an Adviser
“The role of an adviser is to provide guidance and persuade others,” he explained. “You won’t win every battle. Sometimes you succeed, often you fail. You should not resign just because your advice wasn’t followed. One must have thick skin and humility.”

Tenure and Contributions
Subramanian served as CEA from October 2014 to June 2018, during Arun Jaitley’s tenure as Finance Minister. He emphasized that advisers should not let ego interfere with their responsibilities and that acceptance of limited control is essential. His experience with GST underscored the challenges of navigating policy implementation in a complex bureaucracy.

Reflecting on GST
On GST specifically, Subramanian noted, “Initially, I recommended three slabs. Eventually, 10-12 slabs emerged. It was frustrating, but it is part of the adviser’s job. One advises and tries to persuade, but one cannot win every time.”