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Emerging Issues in GST Law and Procedures: An Assessment

Author

Listed:
  • Mehta, Diva

    (Joint Commissioner, State Tax Department, Government of Rajasthan)

  • Mukherjee, Sacchidananda

    (National Institute of Public Finance and Policy)

Abstract

Adopted in 2017, the Goods and Service Tax (GST) marked the beginning of a new era in the history of indirect taxation of India - an era aspiring to realize the dream of `One Nation, One Tax' for one of the biggest federal democracies in the world. In line with the fiscal federalism prevalent in India, GST has not only branched into IGST, CGST and SGST with different tax rates, but also has a provision for Centre-to-State compensations to make up for the losses incurred by the States during the transition phase of GST. For such an elaborate taxation arrangement to face bottlenecks, both at the time of roll-out and its subsequent expansion, is not unusual. A range of tailbacks are observed, ranging from the difficulties of transitioning from the earlier regimes, difficulties in the understanding the GST law(s), various technical, procedural and administrative glitches, and above all the complexity of Centre-State relationships. On the fourth year of the adoption of GST in India, we revisit the big Indian dream of national integration via a single-spine tax system. We explore the issues in the existing GST systems to suggest probable solutions that can smoothen the way forward.

Suggested Citation

  • Mehta, Diva & Mukherjee, Sacchidananda, 2021. "Emerging Issues in GST Law and Procedures: An Assessment," Working Papers 21/347, National Institute of Public Finance and Policy.
    • Handle: RePEc:npf:wpaper:21/347
    Note: Working Paper 347, 2021
    as

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    References listed on IDEAS

    as
    1. Kundu, Rajendra P. & Pandey, Siddhigyan, 2021. "Multiple Public Goods In Networks," Working Papers 21/345, National Institute of Public Finance and Policy.
    2. R. Kavita Rao, 2008. "Goods and Services Tax for India," Macroeconomics Working Papers 22976, East Asian Bureau of Economic Research.
    3. Pandey, Siddhi Gyan, 2021. "Evolution of cooperative networks," Working Papers 21/346, National Institute of Public Finance and Policy.
    4. Rao,R. Kavita & Mukherjee,Sacchidananda, 2019. "Evolution of Goods and Services Tax in India," Cambridge Books, Cambridge University Press, number 9781108473965, November.
    5. Balakina, Olga & Balasubramaniam, Vimal & Dimri, Aditi & Sane, Renuka, 2021. "Unshrouding product-specific attributes through financial education," Working Papers 21/344, National Institute of Public Finance and Policy.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Agarwal, Manmohan & Betai, Neha, 2021. "Intra-Industry Trade in Manufactured Goods: A Case of India," Working Papers 21/348, National Institute of Public Finance and Policy.

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    More about this item

    Keywords

    Goods and Services Tax (GST) ; Value Added Tax (VAT) ; Input Tax Credit (ITC) ; Reverse Charge Mechanism (RCM) ; Input Service Distributor (ISD);
    All these keywords.

    JEL classification:

    • H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General
    • H71 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Taxation, Subsidies, and Revenue
    • H73 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Interjurisdictional Differentials and Their Effects
    • H77 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Intergovernmental Relations; Federalism

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