GST: A Game Changer For India's Economy

The announcement of the GST rates from Jammu and Kashmir, a state enjoying special status in the country, indicates that the era of one nation, one tax, one bazaar has finally arrived.

- Upendrra Rai

The Goods and Services Tax (GST) Council met in Srinagar to finalize the rates of taxes and there was total unanimity among the members of the council about the rates fixed. The new indirect tax regime will be operational from July 1 this year bringing the whole country in one tax bracket. The GST Council comprises of finance ministers of states as well as union territories. The Council which met in Srinagar has fixed the rates for different categories of goods and services. It has fixed rates for 1205 items which will be levied at multiple rates ranging from zero to 28 percent.

There is a political meaning to the choosing of Srinagar as the venue for the GST Council meet. The announcement of the GST rates from Jammu and Kashmir, a state enjoying special status in the country, indicates that the era of one nation, one tax, one bazaar has finally arrived, perhaps paving the way for uniform civil code in future or removal of Article 370 of the Constitution which gives special status to the state.

A message has also been sent across the world that the troubled state of Jammu and Kashmir has thrown its weight around to accept the new tax regime, apart from the fact that the whole country is unanimous in accepting it. After the roll out of the new tax regime, India is going to become a perfect place to do business as any anomaly about taxes will be history. The foreign investors can invest freely as risk factor will be remarkably reduced.