As India celebrates four years of the Goods and Services Tax (GST), it has emerged that its implementation has widened existing economic inequalities in the country, as it has put an additional burden of tax on the poor.
Under the GST regime, the country is relying more on the indirect tax, which is applicable to everyone who makes a purchase or uses a service. During the last four years, indirect tax as a share of gross revenue receipt has been increasing. In contrast, there is a decline in the proportion of corporate tax in gross tax revenue receipt of the Union government. Too much reliance on revenues from the GST will increase inequality in the future.
On July 1, 2017, the country adopted the GST. It was touted as the biggest tax reform in the country. This subsumed around 17 taxes and levies, which included the central excise
— source thewire.in | Pravas Ranjan Mishra | 14/Jul/2021