Question

write an debate on gst

Answer 1

THE debate so far on the Goods and Services Tax (GST) has been largely  concerned with the question of compensation to the states for the losses they may suffer owing to the transition to a GST regime. The losses to states’ exchequer arising from the fact that the revenue from a GST levied upon the final user would not accrue to the producing states in cases involving inter-state trade; the losses arising, even in the absence of inter-state trade, because of the sheer shift from the current tax regime to a GST regime; the length of the period over which the states are to be compensated for such losses; the mode of estimation of such losses: all these have captured attention in this debate. This of course is as it should be, since compensation to states which might suffer because of the transition is indubitably of over-riding concern.