A GST reset: Simplify the tax structure to boost revenue collection

Prime Minister Narendra Modi had announced in his Independence Day address that the GST system would be rationalised

Ahead of the two-day Goods and Services Tax (GST) Council meeting, starting today, representatives of several states ruled by non-National Democratic Alliance parties met last week to assess the potential changes in the indirect tax system. Their suggestions, as reported in this newspaper and elsewhere, indicate that implementing the intended changes will not be easy. For instance, the group has suggested imposing an additional levy over the 40 per cent rate on sin and luxury goods. They have also suggested that the additional levy be fully transferred to states. Further, the states concerned have argued that, with 2024-25 as the