With almost 60% of consumer goods now in the 5% slab, and barely 3% subject to the top 28% rate, the tax is both broad-based and progressive.
India’s market, replaced 17 taxes, boosted logistics, and expanded the tax base, enhancing compliance and revenue.
The rollout of the Goods and Services Tax (GST) in July 2017 marked a tectonic shift in India’s fiscal architecture, unifying the country into a single economic market for the first time since Independence. The genesis of GST dates back to the Atal Bihari Vajpayee government, which set up an empowered committee of state finance ministers to explore the idea in 2000. The Modi government introduced the GST Bill in Parliament in December 2014. Within two years, the 101st Constitutional Amendment was passed with broad support and ratified by more than half the states. The GST Council was instrumental in shaping the consensus. There have been 55 meetings of the Council, and all but one decision was reached unanimously. This isn’t just a legislative triumph, but also a case study in cooperative federalism.
