Expanding GST: Focus on land and real estate

It will give an impetus to factor market reforms, which are essential to drive India's growth

The Finance Minister in her Budget speech mentioned that the goods and services tax (GST) has been truly a transformational tax reform and emphasised that it needs to both expand coverage and rationalise rates going forward.

A committee has been set up under the chairmanship of Bihar finance minister and has been directed to submit its recommendations within the next three months. The committee’s recommendations on rate rationalisation are important both for simplification and to nudge the GST rate incidence from the present level of 12.25 per cent towards the revenue neutral rate of 14.8 per cent