<p>With the GST (Goods and Services Tax) 2.0 in force, India has entered a new era of indirect taxation, which is simpler and more rational than the past regimes. GST brought uniformity to the diverse taxation regimes in the country and helped shape a national tax grid. It has helped to better integrate the economy at the national level and made the inter-state trade and business easier. </p><p>Over the eight years since the launch of the tax, some of the shortcomings of the regime have come to the surface. A systemic change with wide-ranging implications always throws up fresh challenges – GST has been no exception. It is time for course correction in the regime to ensure that the system functions smoothly while helping the economy retain its core strength.</p>.GST 2.0 will bring down grocery bills by 13%, Rs 70,000 savings on small car purchases.<p>Prime Minister Narendra Modi, in an address to the nation on Sunday, called the new tax regime a “festival of savings” and linked it to the idea of swadeshi and self-reliance. His descriptions have a special relevance at a time when the country is trying to cope with the disruptions caused by the punitive tariffs and other policy decisions of the United States President Donald Trump. </p><p>The simplification of the regime – from a four-slab system to a two-slab system – is bound to make a large number of goods and services cheaper. The Prime Minister made the assurance that the benefits of the new GST would be passed on to the consumer. This can lead to an increase in savings, create more demand and raise consumption, and give a boost to the economy.</p>.<p>The government is unlikely to admit it, but the restructuring of GST, which was under consideration for a long time, found critical momentum with the US administration’s trade-related decisions. The Prime Minister has been the face of this policy shift, though the decisions were taken collectively by the GST Council, which is a representative constitutional body of both the Centre and the states. </p><p>This has attracted criticism by the Opposition, which has also pointed out that the ruling BJP was not in favour of the GST when it was being pursued by the UPA government. While the politics of claims and counter-claims will continue, what is undeniable is that the new GST regime marks a new chapter in India’s taxation history. If the projections are on target and if the estimated rise in consumption boosts the economy, the government must complement the reform in taxation with proactive policies in other areas as well.</p>
<p>With the GST (Goods and Services Tax) 2.0 in force, India has entered a new era of indirect taxation, which is simpler and more rational than the past regimes. GST brought uniformity to the diverse taxation regimes in the country and helped shape a national tax grid. It has helped to better integrate the economy at the national level and made the inter-state trade and business easier. </p><p>Over the eight years since the launch of the tax, some of the shortcomings of the regime have come to the surface. A systemic change with wide-ranging implications always throws up fresh challenges – GST has been no exception. It is time for course correction in the regime to ensure that the system functions smoothly while helping the economy retain its core strength.</p>.GST 2.0 will bring down grocery bills by 13%, Rs 70,000 savings on small car purchases.<p>Prime Minister Narendra Modi, in an address to the nation on Sunday, called the new tax regime a “festival of savings” and linked it to the idea of swadeshi and self-reliance. His descriptions have a special relevance at a time when the country is trying to cope with the disruptions caused by the punitive tariffs and other policy decisions of the United States President Donald Trump. </p><p>The simplification of the regime – from a four-slab system to a two-slab system – is bound to make a large number of goods and services cheaper. The Prime Minister made the assurance that the benefits of the new GST would be passed on to the consumer. This can lead to an increase in savings, create more demand and raise consumption, and give a boost to the economy.</p>.<p>The government is unlikely to admit it, but the restructuring of GST, which was under consideration for a long time, found critical momentum with the US administration’s trade-related decisions. The Prime Minister has been the face of this policy shift, though the decisions were taken collectively by the GST Council, which is a representative constitutional body of both the Centre and the states. </p><p>This has attracted criticism by the Opposition, which has also pointed out that the ruling BJP was not in favour of the GST when it was being pursued by the UPA government. While the politics of claims and counter-claims will continue, what is undeniable is that the new GST regime marks a new chapter in India’s taxation history. If the projections are on target and if the estimated rise in consumption boosts the economy, the government must complement the reform in taxation with proactive policies in other areas as well.</p>
