24 JAN,2021 | MEDC
The introduction of GST was undoubtedly a well-intentioned reform, but some issues have arisen regarding its implementation that have compromised its revenue-garnering potential. To remedy this, some of the items currently excluded should be included, and several rates rationalized. Today’s top rate of 28% is too high and it applies to too many intermediate products. That leads to compliance issues. Given the government’s ambition to make India a $ 5 trillion economy in the coming years, GST needs to be strategically tweaked as an economy with a dysfunctional tax system cannot continue to grow year after year. A progressive GST regime will not only lead to tax buoyancy, but it will also be a game changer for both markets and businesses. Streamlining GST is an important component of enhancing the ease of doing business in the Indian economy. A simpler GST will go a long way in enhancing the competitiveness of our economy as well as our attractiveness as a global investment destination.
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