Ex CEA Subramanian, CFO News, ETCFO
India’s GST regime is very complicated and there is a need to simplify this biggest indirect tax reform introduced in 2017, former Chief Economic Adviser Arvind Subramanian said on Friday.
“GST regime is very complicated. There are 50 (different) cess rates and if I look at other things… it might go up to 100 rates,” he said at the event organised by the Centre for Policy Research here.
Talking about other challenges, he said, some people have pointed out to me that the goods and services tax (GST) has encouraged excessive tax demands.
Observing tax terrorism and excessive demands were always features in the Indian system, he said, these have gone up under the GST.
Tax terrorism that GST has introduced is something that needs to be focussed on, he added.
Emphasising the need for rate rationalisation, he said there is a need for GST simplification and increased revenue.
GST was rolled out on July 1, 2017 heralding the start of ‘One Nation, One Tax, One Market’.
It subsumed at least 16 indirect taxes and cesses that previously existed in India, administered separately by the Centre and states, resulting in a greatly rationalised taxation structure.
