BS EDIT: Fixing GST

By Business StandardPublished On Jul 22, 2025

GST Overhaul on the Horizon

The Centre is initiating talks to fix GST. This signals urgency and political will to address a system that needs structural correction

One Nation, Uneven Returns

GST unified India’s market but hasn’t delivered on revenues. The Union government has borne the brunt of shortfalls without a compensation buffer

Complexity Hurts Revenue

Multiple GST slabs have made compliance harder. Reducing slabs can simplify the system and enhance collections without hurting equity

The Cess Question

The compensation cess, extended during the pandemic, is due to end soon. Making it permanent risks complicating the tax structure further

Fix Compliance Bottlenecks

Businesses face procedural hurdles under GST. Without addressing compliance pain points, revenue performance will continue to lag

A Crucial Opportunity

This reform moment must deliver lasting fixes—simpler slabs, clearer rules, and fewer distortions—for GST to realise its true potential