Good and Services Tax (GST) Collection: India’s progress towards ‘One Nation, One Sales Tax’
The progress of India’s Goods and Services Tax (GST), based on taxing value-addition, introduced as a dual tax levied by both the centre and the states, in a short period since 2017 when it was introduced, has been commendable. The GST has helped India progress towards the vision of ‘one nation, one sales tax’; and has helped reduce transaction costs of businesses at all levels, while facilitating lower logistics costs toward greater global competitiveness. To implement GST, a Constitutional amendment was needed as in the then-existing Constitution, there was no provision for levying sales tax on goods by the Union government, and the states could not levy sales tax on services.
