Making GST work

Only a simpler tax structure will increase compliance

The introduction of goods and services tax (GST) three years ago was one of the biggest reforms in recent history. GST was expected to attain multiple objectives, such as creating a single market for goods and services, simplifying the indirect tax system, improving compliance, and raising resources for both the central and state governments. Predictably, it was not easy to bring all states together and limit their powers to tax for the greater national good. Reforms were gradually being implemented in the indirect tax system and value-added tax was introduced in a phased manner starting 2003. In February 2007, the