GST at four: A dive into the milestones and the unfinished agenda

GST Council must maintain revenue momentum, simplify rate structure, and strengthen cooperative federalism in spirit and letter

The Goods and Services Tax, India’s most recent indirect tax reform, completes four years on Thursday, July 1, 2021. The introduction of GST marked a new chapter in India’s taxation, one that changed the working of businesses overnight. 

When the tax was introduced, it strained the working capital requirements of several companies by calling upon them to pay the tax upfront before the business was financially transacted. Soon after, enterprises faced another hurdle in the form of increased monthly compliance. This was balanced by rate reductions that caused severe revenue shortfall year after year. Then, the pandemic struck, and something