I. Undoubtedly the passing of the GST Constitutional Amendment
Bill by Rajya Sabha is a landmark in the annals of India's
fiscal reform after independence. It is bigger than the tax reform
by Raja Chelliah and Manmohan Singh, and the introduction of VAT in
2004. The Goods and Services tax unifies the Indian market for
goods and services into a single market with a common tax code and
hopefully a single rate (18 % RNR) on a pan India basis. It removes
the barriers to the movement of goods and services within
India.
II. The tax system and administration will also be based on a
superior tax design and uniform threshold limits for covering the
maximum units of tax payers in the system to expand the tax base to
support lower and moderate tax than an extortionate tax system.
Hopefully India will hold fast to a moderate tax regime to curb the
inflationary impact of a higher GST rate. To make the Indian export
in the global market competitive this is a must. This has been
