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Finance Minister Arun Jaitley has said that the demonetisation drive shook the financial system for a short while, but will integrate the shadow economy with the formal in the long run and ensure better tax compliance. He said most contentious issues regarding the Goods and Services Tax (GST) have been sorted out between the Centre and states and the new indirect tax regime is at the final stages of implementation.
"This (demonetisation), coupled with GST, in the days to come will ensure much larger revenues as far as states and the central government are concerned and expand the size as far as the formal economy is concerned," he said.