India's tax reform is far from straightforward

A new goods and sales tax is an improvement on the current situation, but still too complex

India, one of the world’s fastest-growing economies, is implementing one of the most sweeping tax overhauls in its history this weekend. But cheering investors should be cautious.

The introduction of a countrywide goods and services tax should put India in line with many countries by introducing a unified levy on sales across the nation. Taxes on goods shipped across the vast nation will be charged at their final destination, replacing the current muddled system under which layers of taxes are charged whenever goods cross state borders.

Any reform that lowers the cost and complexity of doing business in India is a positive.