Avoid policy adventurism

New provisions will hurt the GST system

Goods and services tax (GST), one of the biggest reforms in recent decades, will complete five years in July next year. It was expected that after some initial implementation difficulties, the system would stabilise and boost revenue collection along with output. But that doesn’t seem to be happening for a variety of reasons. While revenue collection has improved, partly because of better compliance, it is still considerably below potential. Despite the given state of affairs, some new provisions that will come into force on January 1 could further affect the GST system. According to one provision, the members of clubs,