In analysing India’s landmark GST (Goods and Services Tax) reform, it is essential that its implications for the States, the ULBs (Urban Local Bodies) and the PRIs (Panchayati Raj Institutions, including Gram Panchayat, Panchayat Samitis and ZilaParishad) be well understood by those entrusted with the GST implementation in the States and at the local levels.
This column attempts to analyse these implications and suggests how the PRIs and the ULBs, under State’s overall supervision, can address them.
Selected Features of The GST Design and Structure
India’s Goods and Services Tax (GST) will tax domestic goods and services under a single tax all across India uniformly. Appropriate Constitutional Amendment has been made to enable States to levy tax on services in addition to tax on goods, and for the Union Government to levy tax on supply of goods in addition to tax on services. (http://lawmin.nic.in/ld/The%20Constitution%20(One%20Hundred%20and%20First%20Amendment)%20Act,%202016.pdf).The GST will subsume many of the existing taxes on domestic goods and services levied by the Centre and by the States.
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