Finance minister Pranab Mukherjee said on Thursday that successful implementation of goods and service tax (GST) can double the country?s output to $2 trillion in a short span of time.

?The gain from GST will propel the country from $1 trillion dollar economy to $2 trillion dollar economy in a short span of time,? he said, quoting a study by National Council for Applied Economic Research.

Addressing a Ficci meeting, Mukherjee, quoting the study, said ?well designed GST will see an increase of 2-2.5% in the GDP.?

The finance minister on Wednesday proposed a three-tier structure for the new indirect tax regime, which seeks to stich together the national economy by subsume all the indirect levies such as excise, VAT and local taxes.

Currently, the gross domestic product (GDP), is over a $1 dollar (Rs 58.68 lakh crore).

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

?The successful implementation of GST will create win-win situations for Centre-state, industry and consumers,? he said. Mukherjee has proposed a three-layer GST rates to the states–20% for goods, 16% for services and 12% for essential items. As per the formula, the Centre and states will share the revenue equally.

The Centre has already discussed the draft constitutional amendment bill with the state finance ministers, he said, adding, ?we are looking forward to constructive suggestions from the empowered committee on this landmark legislation?. On the Direct Taxes Code (DTC), Mukherjee said the government would introduce the DTC Bill in the monsoon session of Parliament beginning July 26. The DTC, on which the government had invited public comments twice, will replace the archaic Income Tax Act, 1961.