The following article is based on my own interpretation of the said events. Any material borrowed from published and unpublished sources has been appropriately referenced. I will bear the sole responsibility for anything that is found to have been copied or misappropriated or misrepresented in the following post.
Sachin Mehta, MBA 2015-17, Vinod Gupta School of Management, IIT Kharagpur
The rounds of discussions going around the introduction of Constitution Amendment bill in the parliament has caught the attention of millions of people in the nation who will be affected by the introduction of the Goods and Services Tax (GST), cited to be one of the biggest taxation reforms in India. It is snowballing into a major debate dragging the businessmen, industrial leaders and politicians across different parties into a series of debates. The bill has witnessed almost two years in the parliament still finding trouble in getting a green signal from the house of the people.
The GST is expected to completely redefine the tax structure of one of the largest developing economies by integrating the tax base of individual states to create a single unified Indian market and a uniform blended tax rate. With a simpler tax structure and increased revenues, GST will also help to boost the Indian exports in foreign markets attributed to competitive pricing that it promises to offer for the goods produced in the economy. The taxation reform has also invited a lot of criticism from the opposing parties and the industrial leaders, raising concerns over the dual-GST model that is being proposed as a part of this reform. Moreover the ambiguity caused by the VAT system and the structure of the proposed integrated goods and services tax has added to the problems being faced by the Modi government. The bill has gradually shaped into a political tussle between the two major political alliances of the nation.
Though the bill promises to bring positive changes in tax structure, but still there is a long way to go as the Constitution amendment bill has missed its deadlines in the past and the analysts are still skeptical about GST coming into the Indian constitution by its next deadline in April 2016. It cannot be predicted as of now that when the nation will witness one of the biggest reforms of the decade, but it is clear that it will have a huge impact over the logistics and supply chain of India.