<b>Ashok K Lahiri:</b> Getting the GST rate right

Unfortunate if the GST regime comes with low rates and derails the fiscal consolidation reform

At its third meeting, scheduled from October 18 through 20, the Goods and Services Tax (GST) Council will decide on the GST rate structure. The decision will have important implications for the economy.

The prospective efficiency gains from the GST are well recognised. By consolidating almost a dozen-and-a-half central and state indirect taxes, the GST will simplify the taxpayer's life and reduce compliance cost. It will reduce cascading and give the states the right to tax services. It will usher in a common market, facilitate inter-state movement of goods, enhance external competitiveness and give a boost to investment and