GST 1.0 Is Past Its Sell-By Date
The Times of India Mumbai|May 26, 2021
GST 2.0 needs devolution of more economic power to the states
R Jagannathan
GST 1.0 Is Past Its Sell-By Date

The recently concluded state assembly elections, which confirmed the dominance of three regional parties in the major states of West Bengal, Tamil Nadu and Kerala, are likely to be a turning point in the evolution of the goods and services tax. To the dissenting voice of West Bengal’s Amit Mitra, we will now see the addition of two new finance ministers, Palanivel Thiagarajan of Tamil Nadu, and KN Balagopal of Kerala. If we add other opposition-ruled states to this list, the demands for change are likely to be raucous.

Thanks to the Covid-induced collapse in revenues for both Centre and states, the GST power structure will come under increasing pressure. Even though the current voting rules allow the Centre to block any change it does not like, the reality is that most states, including not-so-vociferous BJP states, are chafing at the bit over the loss of economic autonomy under GST.

In the run-up to the next GST Council meeting on May 28, opposition-ruled states are calling for extending the GST revenue guarantee regime (which ensures 14% annual revenue growth for states) well beyond the five-year period ending June 2022. At a time when 2020-21 GST revenues fell short by Rs 2.35 lakh crore and fiscal 2021-22 may add another shortfall of Rs 2 lakh crore, the GST structure is already creaking under the weight of its own contradictions. Something has to give – and it probably will.

Esta historia es de la edición May 26, 2021 de The Times of India Mumbai.

Comience su prueba gratuita de Magzter GOLD de 7 días para acceder a miles de historias premium seleccionadas y a más de 9,000 revistas y periódicos.

Esta historia es de la edición May 26, 2021 de The Times of India Mumbai.

Comience su prueba gratuita de Magzter GOLD de 7 días para acceder a miles de historias premium seleccionadas y a más de 9,000 revistas y periódicos.

MÁS HISTORIAS DE THE TIMES OF INDIA MUMBAIVer todo
US soccer scrubs Islamic emblem from Iran flag
The Times of India Mumbai

US soccer scrubs Islamic emblem from Iran flag

The federation said in a statement Sunday that it decided to forego the official flag on social media accounts to show “support for the women in Iran fighting for basic human rights.”

time-read
2 minutos  |
November 28, 2022
Pyar Ke Saat Vachan Dharam Patnii begins on TV tonight
The Times of India Mumbai

Pyar Ke Saat Vachan Dharam Patnii begins on TV tonight

What happens when kismet takes over the lives of two couples belonging to two different sections of society?

time-read
1 min  |
November 28, 2022
Arijit serenades music lovers in Mumbai
The Times of India Mumbai

Arijit serenades music lovers in Mumbai

Arijit Singh casts a spell with his voice

time-read
2 minutos  |
November 28, 2022
ARGENTINA LIVE TO FIGHT ANOTHER DAY
The Times of India Mumbai

ARGENTINA LIVE TO FIGHT ANOTHER DAY

Messi's Strike Rattles Mexico And Lusail, Brings Team Back From The Brink

time-read
4 minutos  |
November 28, 2022
Costa Rica come alive
The Times of India Mumbai

Costa Rica come alive

Los Ticos Stun Japan With Late Fuller Winner

time-read
1 min  |
November 28, 2022
Morocco's moment under the sun
The Times of India Mumbai

Morocco's moment under the sun

Inspired Atlas Lions Shock Belgium For First WC Win In 24 Years

time-read
3 minutos  |
November 28, 2022
ON YOUR MARK, GET SET, SOAR
The Times of India Mumbai

ON YOUR MARK, GET SET, SOAR

Athletics Icon Usha Set To Become First Woman President Of IOA

time-read
2 minutos  |
November 28, 2022
Industry body calls for slower rate hikes
The Times of India Mumbai

Industry body calls for slower rate hikes

CII Asks RBI To Moderate Pace Of Raising Repo As Global Woes May Impact Growth

time-read
2 minutos  |
November 28, 2022
The Times of India Mumbai

Insurance reforms may see PE funding surge in sector

Irdai Raises Investment Cap, Allows PEs To Be Promoters

time-read
1 min  |
November 28, 2022
Cut ties with child-killing regime, Khamenei's niece tells world, held
The Times of India Mumbai

Cut ties with child-killing regime, Khamenei's niece tells world, held

Iranian authorities have arrested a niece of supreme leader Ayatollah Ali Khamenei after she recorded a video describing the authorities led by her uncle as a “murderous and child-killing regime”.

time-read
1 min  |
November 28, 2022