GST: States’ autonomy needs to be defined

The finance minister has recently announced his intention to actively engage the states in the discussions surrounding GST and attempts to introduce the tax in 2013. This is a very encouraging announcement, following a long hiatus on the subject. There has been a lot of talk about the likely economic benefits of introducing this new-improved version of the value added tax. Given that this reform requires consensus among a large number of governments at the central and state level, adopting an approach that addresses the specific concerns of both the parties is necessary for the sustainable design of GST.

Read Full Story>>