Modi govt's tax reforms: GST, a game-changer for the Indian economy

The August 2018 report of the RBI suggests that Rs 15.31 trillion of Rs 15.41 trillion demonetised currency have returned to the banking system

In a special midnight Parliament session, Narendra Modi-led government implemented the biggest-ever tax reforms in the country’s history, paving the way for an era of the uniform tax regime. Close to two years on, the goods and services tax (GST) is set to face its biggest test yet, as the country heads to the Lok Sabha polls.

The GST, rolled out to replace an intricate indirect tax system structure, had increased the indirect taxpayers and made them more accountable. However, this reform had also put brakes on the economy as growth slowed to 5.7 per cent in the first quarter