GST is No Game Changer
IT is reported that the Bank of America-Merrill Lynch (BofA-ML) 'India Economy Watch' report says " While GST is a most desirable measure from a taxation point of view, we think the market over-estimates benefits in calling it a game changer." The report further says,
"Although much is made out of gains from fiscal incentives or tax administration efficiencies, the fact is that tax buoyancy is pretty much pro-cyclical.
We support the implementation of the much-awaited GST as a most desirable fiscal measure. After all, it is only logical to unify the Indian market, removing the plethora of inter-state taxation that fragments it now. Not only does this make collection as well as payment of taxes difficult, but it also delays transportation across states as trucks have to pay state-specific taxes."