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Present State of Goods and Services Tax (GST) Reform in India

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  • Sacchidananda Mukherjee

Abstract

There are several challenges before introduction of GST and these can be classified into two broad heads – a) GST Design and Structure related, and b) GST Administration and Institutional. On design related issues, broad consensus on choice of revenue neutral rates (RNRs), harmonization of GST rate(s) across States, harmonization of list of exempted and excluded goods and services and thresholds for mandatory GST registration across States are yet to be reached. Similarly, there are several issues involved in tax administration (between Central and State Tax Administrations and also across State Tax Administrations) which are not yet solved. Taking cognizance of discussion available in the public domain this paper attempts to provide a broad contour of the proposed GST regime and highlights major challenges which require immediate attention of the Governments.

Suggested Citation

  • Sacchidananda Mukherjee, 2015. "Present State of Goods and Services Tax (GST) Reform in India," Working Papers id:7532, eSocialSciences.
    • Handle: RePEc:ess:wpaper:id:7532
    Note: Institutional Papers
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    References listed on IDEAS

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    1. John Piggott & John Whalley, 2001. "VAT Base Broadening, Self Supply, and the Informal Sector," American Economic Review, American Economic Association, vol. 91(4), pages 1084-1094, September.
    2. R. Kavita Rao, 2008. "Goods and Services Tax for India," Macroeconomics Working Papers 22976, East Asian Bureau of Economic Research.
    3. M. Govinda Rao & R. Kavita Rao, 2005. "Trends and Issues in Tax Policy and Reform in India," India Policy Forum, Global Economy and Development Program, The Brookings Institution, vol. 2(1), pages 55-122.
    4. Emran, M. Shahe & Stiglitz, Joseph E., 2005. "On selective indirect tax reform in developing countries," Journal of Public Economics, Elsevier, vol. 89(4), pages 599-623, April.
    5. Mukherjee, Sacchidananda & Rao, R. Kavita, 2015. "Factors Influencing Unincorporated Enterprises to Register under Value Added Tax (VAT): An Analysis with Enterprises Survey Data," Working Papers 15/145, National Institute of Public Finance and Policy.
    6. Jorge Martinez-Vazquez & Richard M. Bird, 2011. "Value-Added Tax: Onward and Upward?," Chapters, in: Emilio Albi & Jorge Martinez-Vazquez (ed.), The Elgar Guide to Tax Systems, chapter 6, Edward Elgar Publishing.
    7. Rao, R. Kavita & Mukherjee, Sacchidananda, 2010. "Administration of GST: Can we Continue with Present Structures?," MPRA Paper 76446, University Library of Munich, Germany.
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    Cited by:

    1. Anna A. Mikhaylova & Vladimir V. Klimanov, 2018. "The Model of Budgetary Federalism in India: Similarities and Differences Comparing to Russia," Finansovyj žhurnal — Financial Journal, Financial Research Institute, Moscow 125375, Russia, issue 1, pages 61-70, February.
    2. Sacchidananda Mukherjee, 2020. "Estimation and Projection of Petroleum Demand and Tax Collection from Petroleum Sector in India," Journal of Infrastructure Development, India Development Foundation, vol. 12(1), pages 39-68, June.
    3. Mukherjee, Sacchidananda, 2017. "Changing Tax Capacity and Tax Effort of Indian States in the Era of High Economic Growth, 2001-2014," Working Papers 17/196, National Institute of Public Finance and Policy.
    4. Kritika Tekwani & Anil Rana & Rinku Raghuvanshi, 2021. "Impact of GST on Handicraft Exporters," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 3, pages 156-173.
    5. Aggarwal, Bhavya & Chakraborty, Lekha, 2015. "Towards 2030 UN Agenda on Sustainable Development Goals: Technical Challenges in Measuring Gender Inequality in Asia Pacific," Working Papers 15/157, National Institute of Public Finance and Policy.

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    More about this item

    Keywords

    Goods and Services Tax; Value Added Tax; Design and Administration of Taxation; Fiscal Federalism; Indirect Taxation; India; GST; state; Revenue Neutral Rates; RNRs; Centre; fiscal space; consumptio;
    All these keywords.

    JEL classification:

    • H25 - Public Economics - - Taxation, Subsidies, and Revenue - - - Business Taxes and Subsidies
    • H71 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Taxation, Subsidies, and Revenue
    • H77 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Intergovernmental Relations; Federalism

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