“Goods and services tax as an unfinished agenda”

News– GST was launched in July,2017 with the vision of  “one nation one tax”, it has seen quite some adaptations since then but still lacks in some key aspects.   What was the vision behind GST’s Introduction  It was expected to improve tax-GDP ratio, end tax cascading, enhance efficiency, competitiveness, growth, and ensure lower prices. Many exemptions,… Continue reading “Goods and services tax as an unfinished agenda”

How reforms are building momentum for ‘India’s century’

News: The repeal of the three farm laws is seen through different lenses. Some see it as a sign of stepping back from progressive laws, while others see it as something in the interest of farmers. Despite taking back some progressive steps, to reform certain sectors like agriculture, due to lack of political consensus, many… Continue reading How reforms are building momentum for ‘India’s century’

GST rationalisation: Challenge and response

Synopsis: A revision of GST slab rates may create some disquiet, but, if cleverly crafted, it could be a game-changer for manufacturing. Introduction Recently, the group of ministers (GoM) was formed by the GST Council for rate rationalisation and correcting the inverted duty structure. The GoM has a very difficult task of balancing a number… Continue reading GST rationalisation: Challenge and response

A time to introspect: On GST Council meeting

What is the news?  Recently, GST Tax Council held its first physical meeting during the pandemic. It approved various changes. Concessional tax rates on vital COVID-19 equipment such as oxygen concentrators will lapse on Sep 30, while the lower rates on medicines were extended till December. As there are no signs the virus and its variants… Continue reading A time to introspect: On GST Council meeting

Structural changes in GST

Synopsis: Several important decisions taken during the Goods and Services Tax (GST) Council’s 45th meeting in Lucknow last week. What are the important decisions taken during the GST Council’s 45th meeting? Concessional rates for Essential medicines: The council extended concessional rates for several drugs, such as Remdesivir, used to treat Covid-19. It also reduced duty… Continue reading Structural changes in GST

Recommendations of 45th GST Council Meeting

What is the News? The Finance Minister has chaired the 45th Goods and Service Tax (GST) Council meeting. This was the first in-person GST meet since the Covid-19 pandemic. What are the key recommendations made at the GST Council meeting? Concession on Medicines Life-saving drugs Zolgensma and Viltepso used in the treatment of Spinal-Muscular Atrophy… Continue reading Recommendations of 45th GST Council Meeting

There finally seems to be a path forward for GST. Centre and states must strike bargain

Synopsis: After one and a half years of dispute, and with the economy showing signs of recovery, a path forward for the GST finally seems visible. This opportunity needs to be seized What has set back the GST for the past year and a half? Lack of revenues: In 2016-17 the various taxes that were… Continue reading There finally seems to be a path forward for GST. Centre and states must strike bargain

A grand tax bargain in danger of coming apart  

Source: The Hindu Relevance: Issues with GST regime Synopsis: A version 2.0 of GST may have to be designed sooner rather than later. Issues existing with GST Non-expanding tax base: The tax base of GST does not appear to be expanding. The Tax to Gross value addition (GVA) is only about 5% to 6.5% though… Continue reading A grand tax bargain in danger of coming apart  

Despite so many feats, GST still a work in progress

Source: Business Standard Relevance: GST is a comprehensive indirect tax(IDT) that comprises a majority of India’s IDT. Synopsis: The GST is still a work in progress. Hopefully, the GST Council will rediscover the spirit of cooperative federalism and move forward. Improvements after the GST: Due to the introduction of GST, Voluntary tax compliance increased, tracking… Continue reading Despite so many feats, GST still a work in progress

GST: A turning point?

How to improve Tax to GDP ratio with GST?  Context:  For the last 25 years, our tax-to-GDP ratio has been stuck at between 16 and 17 per cent. This is severely constraining our fiscal capacity to devote more resources to our underinvested sectors such as education and health.   How to improve tax to GDP ratio with GST?  The goods and services… Continue reading GST: A turning point?