Evolution of Goods and Services Tax in India

Goods and Services Tax (GST) was implemented in India in July 2017, after four decades of protracted deliberations amid critical socio-economic and political challenges. GST is a comprehensive multistage value added tax (VAT) on goods and services where both central and state governments share the same tax base. Finding a suitable design for GST that encompasses taxes from both the centre and the state tax brackets makes the Indian GST unique among GST implemented in other federal countries. This book is a study of the evolution of GST in India since the Report of the Indirect Taxation Enquiry Committee of 1977. It studies the following issues on GST: a) inclusion and exclusion of taxes, b) finding a suitable mechanism to handle inter-state transactions, c) finding revenue neutrality of the tax reform, d) providing compensation to states for any possible loss of revenue due to its adoption, and e) possible scope for coordination in GST administration.

List of tables; Acknowledgements; List of abbreviations; Introduction; Part I. Genesis and Evolution of GST in India: 1. Decades of indirect tax reforms in India: a journey towards Goods and Services Tax (GST); 2. Towards GST: choices and trade-offs with Amaresh Bagchi; 3. Goods and Services Tax: the Thirteenth Finance Commission and the way forward; 4. Present state of Goods and Services Tax (GST) reform in India; Part II. Revenue Neutrality of GST: 5. Estimation of revenue neutral rates for Goods and Services Tax in India; 6. New assumptions, new estimates: scrutinising a new report on revenue neutral rate; 7. Exploring policy options to include petroleum, natural gas and electricity under the Goods and Services Tax (GST) Regime in India; Part III. GST Administration and Possible Impacts of GST on Indian Economy: 8. Administration of GST: can we continue with present structures?; 9. Goods and Services Tax: performance and progress; 10. Conclusion: impact of GST and what might happen; Index.

R. Kavita Rao is Professor at the National Institute of Public Finance and Policy, New Delhi. Her research interests are the design and implementation of GST in India, methodology for assessing the comprehensive impact of various tax exemptions on the economy, and sectoral interlinkages and their implications in planning a growth strategy.
Sacchidananda Mukherjee is Associate Professor at the National Institute of Public Finance and Policy, New Delhi. His research interests are public economics, environmental and resource economics, water resources management, development economics, statistics and applied econometrics.