Archive · 13 Aug 2025
GST: Proposals for a More Comprehensive Tax System
GST, a tax system, was launched in India to make taxes simpler and more efficient.
It excluded things like gas and alcohol.
The problem is, the government and states depend on those items for money, so changes are slow.
Suggestions include fewer tax rates, adding more items, and making paperwork easier.
Streamlining data will help the economy and growth.
GST was introduced in India in July 2017 to improve production and consumption.
GST 1.0 excluded items like alcohol, electricity, and petroleum products.
Reforms are hindered by concerns about revenue autonomy for governments.
Proposals suggest streamlining GST rates and expanding coverage.
Further reforms should reduce compliance costs and simplify formalities.
- Who
- Proposed by D.K. Srivastava, Chief Policy Advisor at EY India.
- What
- GST reform proposals, including rate streamlining and broader coverage.
- When
- GST was introduced in July 2017, with ongoing discussions about reforms.
- Where
- At central and state levels.
- Why
- To improve tax efficiency, streamline the market, and boost economic growth.
Current System
Proposed Reforms
Coverage of Goods
Current System
Exclusion of certain goods limits GST's scope.
Proposed Reforms
Proposed reforms aim to broaden GST coverage by including these previously excluded items.
Rate Structure
Current System
Multiple GST rates lead to complexity and compliance issues.
Proposed Reforms
Proposals advocate for streamlining to two or three rates for simplicity.
- Implementation Year
- 2017
- Author
- D.K. Srivastava
- Key Goods Excluded
- Alcohol, Electricity, Petroleum
- FY20 Revenue from Alcohol/Petroleum (excl. cess)
- 60.8%
- FY24 Revenue from Alcohol/Petroleum (excl. cess)
- 50.8%
