Centre must convince states
Is it possible that the GST will be rolled out any time soon? With the states and the Centre failing to reach any kind of meaningful consensus, the rate at which GST will be charged is just not certain. Many states want many goods and services out of the GST which means while certain goods will be charged different from state to state, substitute goods (not necessarily of the same order) that will get charged a fixed GST rate will gain competitive advantage and that would be an unfair market. The Centre should realise that the GST is going to fail if the states keep up their demands. The states, therefore, would need assured revenue compensation for a fixed period to be able to accept GST. One way to get states to agree, and demonstrate the state’s sincerity would be to extend and advance compensation, based on median revenue-loss calculations, to the states before GST is rolled out. The Centre needs to think of ways to get this tax reform on the road, and not let states hold up the process of achieving an uniform market.
Sumona Pal, Kolkata
Kejriwal and Modi
One of the key things to watch out for is how the Centre treats Delhi if the AAP comes to power in the national capital. After all, the run-up to the elections showed how the AAP is emerging as the BJP’s ideological and political rival. Whether the Modi government will have to get used to disruptive Kejriwal style of functioning, or whether Kejriwal bends to Modi’s quasi-supremo style of action, the national capital will be the stage of a serious political theatrics in the next couple of months.
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