Current General Studies Magazine (August 2016)
General Studies - III "Economy Based Article" (A GST Less Taxing)
The GST is expected to be implemented from April 1, 2017.
Many are worried about its inflationary impact.
After a tumultuous 13-year journey, the Rajya Sabha finally approved the
constitutional amendments that will enable the Goods and Service Tax (GST) to
become a reality. Without question, the coming together of all parties was a
commendable effort and the Indian GST will be the largest tax reform to be
implemented anywhere in the world. The media and business leaders are euphoric,
labelling this a “one nation, one tax” measure that will boost the GDP and usher
in a new era of economic prosperity by significantly improving ease of doing
business. One commentator even claimed that GST would “almost eliminate
corruption”. In reality, the constitutional amendment is just the first step and
does nothing more than enable the Centre and the states to implement a new
method of taxation — GST. The herculean task that lies ahead is the
implementation of this gigantic tax reform which will require the successful
tackling of several issues.