Successful implementation of the Goods and Service Tax (GST) will create win-win situation for the Indian industry and can boost economy from USD 1 trillion to USD 2 trillion in a short period of time, said Finance Minister Pranab Mukherjee on Thursday.

While addressing the FICCI members on "Agenda for the Nation: The Tax Reforms- GST and DTC" in New Delhi, Mukherjee told industry leaders, "I seek your support. This tax is a win-win situation for Centre-state, industry and consumers. The gain from GST will propel Indian economy from USD 1 trillion to USD 2 trillion in a short period of time."

"The proposed GST will provide a level playing field to domestic producers besides stimulating the economy by removing tax distortions and tax competitions," he told FICCI members.

The minister on Wednesday had proposed a three-tier structure during the first year of introduction of the new indirect tax regime under which the central government will keep the tax on essential items at 6 percent, for other items the standard rate would be 10 percent, while for services the levy would be 8 percent.

The minister also urged the industry leaders to convince states and political parties to arrive at a consensus on the constitutional amendments needed to implement this major national reform. He had assured the state governments that they would be compensated for any revenue loss from GST roll-out.

"In the first year of GST (2011-12), the peak Central GST and state GST will be 10 percent each," he said, adding the rates can be reduced to 9 percent in the second year.

The effort, he added, reduce the CGST and SGST at 8 percent each for goods and as well as services. "In a phased manner, we will be able to achieve a single CGST and SGST rate for both goods and services," Mukherjee added.

Speaking on the issue of rising inflation, the FM has said that the inflation rate of some of essential items is moderating. He was very optimistic that inflation rate would come down to a moderate level of 5-6 percent in the coming months.

"And GDP will grow at 8.5 percent in the current fiscal (2010-11), provided the services sector fares well," he added.