Saturday, August 27, 2016

How GST will impact India?

Recently the Modi government with the help of other political parties of India unanimously passed the Goods and Services Tax bill both in Rajya and Loksabha. This bill is now to be ratified by the state assemblies for its implementation, and already states like, especially where the BJP is in power, Assam and Gujarat have ratified it in local assemblies. The Goods and Services Tax will be imposed in India from April 2017 onwards. The moment it was passed in both houses, the Modi government started boasting that GST will boost economic growth in India and it is a policy of creating "one single market" in India as well as slogans like "One nation, One tax" started splashing in newspaper headlines. Are these claims of the Modi government about GST true? In my latest economic report I analyze GST and its impact on the Indian economy.