Goods and services tax (GST) promises to be one of India’s biggest financial reforms. Some experts say it could add up to a full percentage point, maybe even more, to the country’s gross domestic product. But progress towards the tax that would have created a unified market has been patchy because it requires the states to share their constitutional power of taxing goods with the Centre.
In the run-up to the unification, the states also agreed to a reduction in the central sales tax, or CST, (revenue from which accrued to them) and part of the delay is also because of disagreements regarding pending compensation for this from the national exchequer. Read More