20 SEP,2021 | MEDC
There is good news on the fiscal front. Revenue collection this year is likely to exceed the initial estimates as the second wave has had a relatively limited impact on economic activity. Although a real risk of another wave remains, vaccination is proceeding smoothly throughout India. The GST Council needs to take a long-term view on socioeconomic issues and focus on streamlining the system. Too many rates have induced distortions and complications into the GST system. Rather than tinkering with individual items, the Council should take a macro view, and attempt to rationalize a plethora of rates with the objective of creating a simple and robust system. Some clear thinking is now called for. For example, it is worth considering how petroleum and other fuel products (whose prices are currently sky-high) could be brought under the ambit of GST without further complicating the fiscal structure.
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