GST is Inevitable for all its Virtues

This refers to your Editorial Make it work (The BL dated 21/05/22).

The Goods and service Tax introduced in 2017 can perhaps be one of the best tax reforms the economy has experienced in the recent past.  The Supreme Court Decision may have constitutional validity, judicially acceptable reasoning and theoretically not workable conditions in terms of the provisions of the law to recognise the GST councils’ recommendations and make them binding on the centre and states, the fact remains that the GST benefits the economy in several ways to make the complicated tax system simple and good for enhancing the cooperative federalism badly needed, improving uncooperative federalism and achieving fiscal federalism. Though there can be ample scope for removing the deficiencies in the overall working of GST mechanism, it has to be accepted and appreciated that any tax policy to get stabilised and derive maximum benefits takes time taking into consideration particularly the movement of goods and services in such a vast economy having different geographical, social, economic, political and technological conditions. All said, the GST collections have recorded solid improvements and the general acceptance by the business community, trade and commerce and general public has also been found to be encouraging. Since the tax system of the country in relation to its implementation and compliance successfully depends upon several factors, the performance of GST has been by and large highly satisfactory with lot of scope for further improvement perhaps, the need to continue it by appealing to the Supreme Court for a review from the point of view of its benefits to the economy and the public good is paramount. After all, the growth of the economy, equitable distribution of wealth, maintenance of price stability and welfare of the masses   which is unfortunately a casualty these days and universal welfare of the people are all dependent upon the taxation  and other policies of which GST occupies a very prominent and indispensable position.

T V G Krishnan

Bengaluru.   

(Sent to BL but not found published.)