ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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What Ails the Implementation of the Goods and Services Tax?

Since the Goods and Services Tax cannot be implemented by 1 April 2016, there is a strong case to implement a central GST from that date by merging the excise and service tax regimes. Such an integrated framework will not require any major legislative change; it will demonstrate the central government's commitment to the GST, and give confidence to trade and industry.

The Select Committee of the Rajya Sabha has recommended four changes to the Constitution (122nd Amendment) Bill (CAB), which prescribes the framework for the Goods and Services Tax (GST) regime. This article explores the extent to which the CAB provides an optimum design to make the manufacturing sector more competitive and fosters the growth of a seamless national market. Section 1 examines the design of the bill with reference to an ideal GST framework. Section 2 analyses governance issues in the proposed GST Council. Section 3 identifies drafting changes required in the CAB, and Section 4 concludes.

1 Design of the Bill

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