Skip to main navigation menu Skip to main content Skip to site footer

GST in India: Expectations and challenges


India is ready to implement its “Goods and Services Tax (GST)†act from 1st April 2017. It is expected that GST will minimise all the loopholes of existing tax system in India. However, critics argue that the euphoria over GST camouflages the deadly assault to tax policy as a means of promoting equity and efficiency. This review on GST highlights the challenges over GST claims. It has been observed that to implement GST effectively, both centre and state have to go hand in hand.


Cascading Effect of Tax, Tax Buoyancy, Vertical Fiscal Imbalance, Make in India, India


Author Biography

Ratul Mahanta

Assistant Professor, Department of Economics, Gauhati University Guwahati-781 014, Assam, India


African Revenue Service. Available at: (accessed 15 September 2016)

Belinga,V., Benedek,D., Mooij, R. de and John Norregaard, J. (2014). Tax Buoyancy in OECD Countries, IMF Working Paper, WP/14/110, Fiscal Affairs Department, available at: (accessed 20 September 2016)

Bhaskar, V. and Nath, K. P.S.S. (2015). What Ails the Implementation of the Goods and Services Tax? Economic & Political Weekly, 12 September, Vol. l no. 37, pp.12-14

Chadha, R., Tandon, A., Ashwani, Mohan, G. and Mishra, P.P. (2010). Moving to Goods and Services Tax in India: Impact on India’s Growth and International Trade, National Council of Applied Economic Research, December 2009, pp. 1-87, available at: (accessed 10 September 2016)

Krishna, G.D. (2016, 21 August). A Step Closer to GST, The Assam Tribune, (p.6)

Kleen, M. (2012). Targeting, Cascading, and Indirect Tax Design, Raja Chelliah Memorial Lecture Series, National Institute of Public Finance and Policy, New Delhi, available at: (accessed 20 September 2016)

Mukherjee, S. (2015). Present State of Goods and Services Tax (GST) Reform in India, Working Paper No. 2015-154, National Institute of Public Finance and Policy, pp.1-14, available at: (accessed 12 September 2016)

Mukherjee, S. and Rao, R.K. (2015). Designing GST for India Inclusive of Petroleum, Natural Gas and Electricity: Policy Options, NIPFP One Pager No. 006 (2014), available at: (accessed 10 September 2016)

Muthu, K. (2016). Goods and Service Tax: Crouching Tiger or a Jackal in Disguise? Unpublished dissertation, Master of Science in Contemporary India, University of Oxford, pp. 1-83, available at:,%20K%20MSc%20Dissertation%20June%202016 (accessed 12 September 2016)
National Treasury, (2015). Tax Statistics. [online] Pretoria: National Treasury and South

Picketty, T. and Qian, Q. (2009). Income Inequality and Progressive Income Taxation in China and India, 1986–2015, American Economic Journal: Applied Economics, 1(2), pp.53–63, available at (accessed 12 September 2016)
Rajkumar, J.D. and Krishnaswamy, R. (2015). Surge in Union Government Revenues Indirect Tax Collection Leads Growth, Economic & Political Weekly, 12 December, Vol. l no. 50, pp.82-85 EP

Sharma, C.K. (2012). Beyond Gaps and Imbalances: Re-structuring the Debate on Intergovernmental Fiscal Relations, Public Administration, 90 (1), 99-128, DOI:10.1111/j.1467-9299.2011.01947.x

Sridhar, V. (2016) A Killer Tax, Frontline, 2 September, Vol. 33, no. 17, pp.45-48, (ISSN 0970-1710)

Subramanian, A. (2015). Report on the Revenue Neutral Rate and Structure of Rates for the Goods and Services Tax (GST). [online] New Delhi: Ministry of Finance, available at: (accessed September 9, 2016)
World Bank, (2015a). Ease of Doing Business Index (1=most business-friendly regulations) |Data | Table. [online], available at : (accessed 10 September 2016)

World Bank, (2015b). Goods and Services Tax Transport and logistics (T&L) sector. [online] PWC, available at: (accessed 10 September 2016)


Download data is not yet available.