4/12/2024, 5:24:02 pm

India’s GST model is set to get more lopsided

Creating a new a GST slab of 35% for some so-called sin goods will only complicate the rate structure. The GST Council however has left itself with no option as it lowered average GST rate even when govt were under fiscal pressure because of economic shocks. Today, we are left with system that levies marginal tax on most of GST base and compensates with almost punitive rates on small proportion.