The reform agenda: Why pushing strategic disinvestment will be crucial

Simplifying the GST structure is not the only reform on the government's agenda.

The Goods and Services Tax (GST) Council last week made significant changes to the indirect tax structure. The council decided to move to, principally, a two-rate structure — 5 and 18 per cent — with a higher slab for a few sin and luxury goods. The council also amicably addressed the issue of compensation cess. Cess will be collected only on some sin goods till the time the debt raised to compensate the states for revenue shortfall during the pandemic is fully repaid, which is likely to be completed in the coming few months. Taken together, these measures