Tightening the GST net: Time to expand base, streamline flow of credit

The government should issue clear guidelines to determine the cases where the supplier has profiteered due to the reduction in output tax

The new government will have to tighten the GST net in its upcoming tenure. The government will have to expand the GST base in the country. At present, real estate (land and building) and petroleum products are outside the GST net. Their absence in the GST net results in a breakage of the credit chain and adds to the cost of the businesses. Alth­ou­gh, petroleum products are inten­tio­nally kept out of GST for a particular period, bringing these products under GST would lower the price of the output supplies.