Avoid amendment

Proposed changes in GST will increase friction

The goods and services tax (GST) would soon complete five years. While this milestone will lead to a structural change in terms of compensating states for the shortfall in revenue collection, it would also be an opportunity to thoroughly evaluate the outcomes so far and strengthen the system. The GST was expected to simplify the indirect tax system, improve the ease of doing business, and boost revenue. However, the system has underperformed, partly because of issues related to implementation capabilities. This has resulted in lower than desired revenue collection. Tax collection has also suffered because of a multiplicity of rates,