Seven years on

Reform of GST, rates included, is overdue

It has now been seven years since India’s indirect tax regime was completely overhauled, with the introduction of goods and services tax (GST). There was a great deal of compromise about the final form of GST, including between the Union government and doubtful states. These compromises, it was understood at the time, would limit the efficiency improvements provided by GST. Many hoped, including this newspaper, that over time structural impediments within GST would be removed and the full efficiency gains would be realised. Seven years and two general elections on, it is clear that more effort needs