Tyranny of the GST status quo: Incremental changes will not solve the problem

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Illustration: Ajay Mohanty

The GST Council meetings have become routine, with the Goods and Services Tax (GST) rates being tinkered with and minor administrative changes being made as and when required, rather than adapting the tax structure to best practice approaches.

The Council appears to be taking a short-term view, namely that the system has been stabilised, that stakeholders know and have accepted the system well, and that decisions are only taken to address immediate needs and make minor corrections. There is no attempt to take a long-term view of focusing the structure on minimising the three costs associated with taxes, namely collection costs, compliance costs and

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