- GST is considered a significant indirect tax reform in India
- Aimed to improve tax effort, reduce tax cascading, enhance efficiency, and accelerate GDP growth
- Concerns about poor revenue performance initially, but impressive growth post-Covid recovery
- Increase in tax base still awaited, GST-GDP ratio declined post-GST implementation
- States have performed poorly post-GST, with exceptions like Maharashtra and Tamil Nadu
- Factors affecting GST performance include multiple rates, fraudulent claims for input tax credit, and equal division of tax revenue between Union and states
- Issues with operation of Integrated GST, with evidence of revenue loss for consumer states like Kerala.
Source: a2ztaxcorp.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
