Letters: The GST model

This refers to Satya Poddar's article "GST should be a good and simple tax" (May 19). The author has appropriately stated that the model adopted by India is unique, without any precedents in the world. But on the other side, the proposed Goods and Services Tax (GST) model law has included various provisions that have been made for the convenience of states only. These avoidable provisions, such as an additional 1 per cent tax on the inter-state supply of goods, might somehow mitigate the advantages that we are expecting out of it.

Industry, with a bit of luck, is waiting for these provisions to be repealed in the select committee and a full-fledged reform after a long watch. Apart from a good and simple tax structure, effective enforcement, reasonable audit, strict penalty provisions and a good review are important pre-conditions for an effective GST.

N K Gupta New Delhi

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