Centre-state consensus raises hope for GST implementation
The last two days have brought further clarity on the GST road map with the empowered committee debating the suggestions of the sub-committees on CST compensation and GST design and coming to a consensus on these contentious issues. It’s indeed an important milestone and augurs well for the progress of GST, a major tax reform which can be catalyst for growth and competitiveness of the Indian industry, in these times of economic slowdown.
The consensus that has emerged on GST structure, rates and base are the facts we need to ponder on as these clearly impact the final design of GST when rolled out. First and foremost the Centre has given in to the demand of the states by deviating from a single uniform GST rate to a more acceptable floor rate with a narrow band, more on the lines of the European Union. Well, while this may not be the most desirable, it’s definitely pragmatic, considering the demand of the states and the ground realities. How these floor rates emerge within states on categories of goods and its consistency is something
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