Ironing Out The GST's Wrinkles
Businessworld|June 23, 2018

The GST was implemented a year ago amidst much fanfare. The idea was to simplify the complex. Has GST lived up to its promise?

Minhaz Merchant
Ironing Out The GST's Wrinkles

ALBERT EINSTEIN OFTEN SAID the clever simplify the complex while the rest complicate the simple. The Goods and Services Tax (GST) was implemented one year ago amidst much fanfare at a midnight gathering of the country’s leaders in the central hall of parliament. The objective was to collapse multiple state and central taxes into one broad-based nationwide tax. The Goods and Services Tax would therefore subsume VAT, service tax, excise and CST. The idea was to simplify the complex.

Has GST lived up to its promise? The first year of such an overarching tax reform is bound to undergo teething problems, especially in a fractious democracy like India, where regional satraps fiercely guard their states’ tax revenue. The fact that the government was able to get all states and union territories on board was itself a significant achievement. But the hidden hand of the bureaucrat which determines the devils in the detail has complicated what should have been a clean, simple GST regime. Einstein would not have been pleased.

Most truckers though are a happy lot these days. PostGST, their travel time across inter-state borders has fallen by over 25 per cent. Transporters are saving fuel. Drivers are saving money. Before GST was introduced, they would wait for hours at state check points. One driver said he once sat, ate and slept in his truck for 36 hours at a state border post. Now the checkpoints have gone. The need to bribe officials is over. But there is one niggle: flying squads of RTO inspectors who extract their pound of flesh. Overall though, GST has been a boon for the transport and logistics sector. As smaller towns assume greater importance in India’s economy, the sector will become a key driver of GDP growth.

At the checkposts

This story is from the June 23, 2018 edition of Businessworld.

Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.

This story is from the June 23, 2018 edition of Businessworld.

Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.

MORE STORIES FROM BUSINESSWORLDView All
Gauging Trumponomics For India
BW Businessworld

Gauging Trumponomics For India

Despite some shortto mediumterm headwinds in trade and immigration, the broader Indo-US vision of counterbalancing China’s influence is expected to ensure continued cooperation under Trump 2.0

time-read
2 mins  |
November 16, 2024
Reflections on Consciousness and Creation
BW Businessworld

Reflections on Consciousness and Creation

Indian-American DEEPAK CHOPRA on the nature of the universe, the digital fabric of existence, and the power of a conscious mind

time-read
2 mins  |
November 16, 2024
MORE TAKE TO DRIVING IN STYLE
BW Businessworld

MORE TAKE TO DRIVING IN STYLE

High-end luxury vehicles are no longer part of a niche market, but a rapidly expanding segment of automobile sales, driven by changing consumer preferences, rising disposable incomes and better infrastructure

time-read
4 mins  |
November 16, 2024
India's Growing Affinity for Swiss Watches: A Luxury on the Rise
BW Businessworld

India's Growing Affinity for Swiss Watches: A Luxury on the Rise

NDIA'S ROBUST ECONOMIC growth, projected to exceed 6 per cent in 2024 and 2025, is fostering a rising demand for aspirational products. As disposable incomes increase, particularly among the expanding middle class, luxury goods such as Swiss-made watches are gaining popularity.

time-read
2 mins  |
November 16, 2024
An ENRiching Outlook
BW Businessworld

An ENRiching Outlook

KPMG's latest report shows energy CEOs being optimistic about the sector's outlook. ANISH DE, Global Head, ENRC, KPMG speaks to BW Businessworld's Arjun Yadav on what's driving this confidence

time-read
2 mins  |
November 16, 2024
Paving the Path to a Sustainable Future
BW Businessworld

Paving the Path to a Sustainable Future

Salesforce's ESG journey has made an impact beyond the company. SUNYA NORMAN, SVP of ESG Strategy and Engagement at Salesforce, shares more on how the tech giant integrates sustainability into its core operations, supporting global goals while empowering employees

time-read
2 mins  |
November 16, 2024
LEADERSHIP TRANSITION AT XIAOMI INDIA
BW Businessworld

LEADERSHIP TRANSITION AT XIAOMI INDIA

Xiaomi India is experiencing a leadership evolution, beginning with Muralikrishnan B's departure as President by the end of 2024. This change underscores Xiaomi's shift towards nurturing local talent amidst dynamic global shifts. The story tracks key transitions from Manu Kumar Jain's leadership to Muralikrishnan B's impactful tenure, along with recent strategic hires, highlighting Xiaomi's alignment towards market adaptability and consumer focus

time-read
3 mins  |
November 16, 2024
WEAVING SUSTAINABILITY
BW Businessworld

WEAVING SUSTAINABILITY

Once a modest home textile manufacturer, Jindal Worldwide has evolved into a vertically integrated textile powerhouse, spanning critical segments of the yarn and fabric value chain

time-read
1 min  |
November 16, 2024
FORCE FOR GOOD
BW Businessworld

FORCE FOR GOOD

FY24 saw capacity expansions for Century Enka in nylon and polyester segments, along with investments in modernisation, renewable energy, and safety initiatives

time-read
1 min  |
November 16, 2024
REIMAGINING TOMORROW
BW Businessworld

REIMAGINING TOMORROW

For V-Guard, tomorrow signifies progress, driven by today's actions, setting the foundation for future growth and value creation for all stakeholders

time-read
1 min  |
November 16, 2024