ISAS Briefs

The Upper House of the Indian Parliament has passed the long-awaited Goods and Services Tax (GST) Constitutional Amendment Bill. This paves the way for the growth of a common market in India with uniform tax rates across the country for various goods and services. This paper discusses the economic implications of the GST. While discouraging tax evasion and removing inefficiencies in the current indirect tax system, the GST must be anti-inflationary and avoid dilution of efforts in moving towards a more progressive tax structure.