Work in progress

GST must be reformed to achieve its potential

The goods and services tax, as introduced four years ago, was necessarily imperfect. This was a product of the political negotiation required for a major indirect tax reform to pass the constitutional hurdles in its path. Yet even so, it was welcomed by many because it had the potential of clarifying the tax law, simplifying tax payments, reducing leakage, increasing compliance, and raising revenues. That potential, however, required it being continually improved as and when problems were revealed in its implementation. While the GST Council has indeed met regularly and tweaked the GST, not all of that has been for