Why the GST Will Have Only A Marginal Effect On the Indian Economy - Yet It Is Important
Arun Jaitley in the Rajya Sabha on an earlier occasion (Courtesy: The Hindu) The doors to this temple of the tax gods have been finally opened, and a new deity by the name of Goods and Service Tax (GST) is being prepared for installation with the Prana Pratishtha currently being undertaken in the Parliament's Upper House. While there are points being extolled in its favor, and state parties and regional leaders voicing concerns of revenue loss to their state administrative budgets, there is a near unanimous consensus on the bill being made a reality. The country is being unified into one market in terms of the indirect tax net. Even across the various cabals and lobbies the unanimous chants of 'this is a landmark reform' are gaining strength. Even as we scour the layers of discussions and platitudes piling up across various fora, the benefits are being overstated. Yes, there is a need for a simpler taxation structure, and yes, free movement of goods and services sho