Course correction

Underperformance of GST must be addressed

The Indian economy is returning to normal after almost a year of unprecedented disruption. The focus should now shift to the sustainability of recovery and addressing pending policy shortcomings. One of the policy weaknesses India needs to urgently address is the underperformance of goods and services tax (GST), though it has improved in recent months. Sluggish overall revenue collection has exacerbated the fiscal stress and is affecting government expenditure. GST’s implementation with inadequate planning, a multiplicity of rates and their random tinkering, including for electoral reasons, and poor information technology support contributed to the problem.

The GST Council in its next