GST in its current sub-ideal form also can deliver significant changes
Moneylife Digital Team 14 December 2015
Even in its current form, the GST reforms can deliver significant efficiency and productivity improvements by moving towards a single market across India, says Religare Capital report
 
With barely a week left for the Winter session of Parliament to end, hopes of the Constitutional Amendment Bill on the goods and service tax (GST) getting the Rajya Sabha nod have remained fickle. Although the amended Bill has several distortionary features, like additional 1% levy, large exclusions from base, rate structure and exemptions for petroleum products, even in its sub-ideal form, the GST Bill has potential to deliver significant efficiency and productivity gains, says a report.
 
According to a research note from Religare Capital Markets Ltd, the GST reform, which is the extension of the value added tax (VAT) that was implemented in the mid-2000s, is heralded as the great hope for simplifying the intricate web of indirect taxes in India.
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