Simplifying India's GST: A Call from the Former Chief Economic Adviser

Former Chief Economic Adviser Arvind Subramanian highlights the complexity of India's GST regime, introduced in 2017. With up to 100 different tax rates and issues like tax terrorism, he stresses the need for simplification and rationalization to increase revenue and streamline the taxation system.

During a recent event organized by the Centre for Policy Research, former Chief Economic Adviser Arvind Subramanian addressed concerns about India's Goods and Services Tax (GST) regime. Introduced in 2017, GST represents a major indirect tax reform but remains complicated, with citizens facing around 100 different tax rates.

Subramanian noted that excessive tax demands and instances of tax terrorism have persisted and even increased under the GST system. These challenges, he suggested, underscore the importance of focusing on simplifying the structure to alleviate taxpayer distress.

Emphasizing the call for rate rationalization and GST simplification, Subramanian advocated for reforms geared towards increasing revenue while maintaining a uniform tax landscape, as heralded in the 'One Nation, One Tax, One Market' vision at GST's launch.

(With inputs from agencies.)