Adani Enterp. 1938.00↑26.75(1.40%)
Adani Ports 687.80↑8.05(1.18%)
Apollo Hospitals 4563.10↑9.90(0.22%)
Asian Paints 2987.70↑4.85(0.16%)
Axis Bank 873.85↑7.90(0.91%)
B P C L 367.95↓-0.40(-0.11%)
Bajaj Auto 4471.00↑13.30(0.30%)
Bajaj Finance 6389.70↓-0.55(-0.01%)
Bajaj Finserv 1375.70↑1.25(0.09%)
Bharti Airtel 782.20↓-6.90(-0.87%)
Britannia Inds. 4596.90↑9.85(0.21%)
Cipla 922.35↓-11.15(-1.19%)
Coal India 236.85↓-0.60(-0.25%)
Divi's Lab. 3303.90↑21.35(0.65%)
Dr Reddy's Labs 4954.95↓-13.05(-0.26%)
Eicher Motors 3362.15↑22.85(0.68%)
Grasim Inds 1749.05↓-10.80(-0.61%)
H D F C 2716.95↓-145.10(-5.07%)
HCL Technologies 1053.45↓-13.35(-1.25%)
HDFC Bank 1636.90↓-90.90(-5.26%)
HDFC Life Insur. 541.85↓-4.65(-0.85%)
Hero Motocorp 2525.00↑10.50(0.42%)
Hind. Unilever 2505.20↓-1.55(-0.06%)
Hindalco Inds. 439.25↓-6.25(-1.40%)
ICICI Bank 932.35↑10.65(1.16%)
IndusInd Bank 1133.35↓-1.25(-0.11%)
Infosys 1255.45↓-18.10(-1.42%)
ITC 425.80↑1.20(0.28%)
JSW Steel 734.80↓-3.90(-0.53%)
Kotak Mah. Bank 1948.80↑1.20(0.06%)
Larsen & Toubro 2384.15↑27.25(1.16%)
M & M 1226.60↓-5.10(-0.41%)
Maruti Suzuki 8880.15↑79.55(0.90%)
Nestle India 21867.20↑173.45(0.80%)
NTPC 174.25↓-2.10(-1.19%)
O N G C 160.05↓-0.95(-0.59%)
Power Grid Corpn 239.45↑0.60(0.25%)
Reliance Industr 2447.85↓-0.15(-0.01%)
SBI Life Insuran 1173.50↑6.05(0.52%)
St Bk of India 582.40↑2.40(0.41%)
Sun Pharma.Inds. 973.15↓-0.85(-0.09%)
Tata Consumer 777.00↑1.50(0.19%)
Tata Motors 481.50↑0.70(0.15%)
Tata Steel 108.95↓-2.10(-1.89%)
TCS 3214.65↓-6.05(-0.19%)
Tech Mahindra 1038.65↓-6.80(-0.65%)
Titan Company 2730.70↑60.30(2.26%)
UltraTech Cem. 7576.90↑74.65(1.00%)
UPL 726.35↓-5.15(-0.70%)
Wipro 379.25↓-4.45(-1.16%)

GST and states, a reality check of how indirect tax system is working

Early fears about the regime have not come true, but there is room for improvement

Sachin P Mampatta Mumbai

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2 min read Last Updated : May 05 2023 | 12:07 PM IST

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Taiwan in 1951 came up with an ingenious plan to improve tax compliance: citizens taking receipts for purchases could use them as lottery tickets. Customers were incentivized, and businesses found it hard to evade taxes. The plan’s success prompted other countries, Slovakia and Greece among them, to launch similar initiatives.

India doesn’t seem to find the need yet for such schemes amid surging goods and services tax (GST) collections. Overall collections touched a record high of Rs 1.87 trillion in April 2023, though there are some differences among individual states.

The fears large manufacturing states expressed when the GST regime became operational in the financial year 2017-18 (FY18) have not materialised. The regime looked to tax at the point of consumption rather than the place of production. States which are India’s manufacturing hubs expected a loss of revenue. They have not lost by accepting GST.