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What are the difficulties in implementing GST in India?

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It is not easy to make any changes to the prevailing taxation norms of a country and the same applies to a democratic Republic like India, which has a total number of 29 states with all growing powerful day by day. This thereby landed up creating problem for the central government with the decision of implementing the GST bill even though GST impact was subject to be similar for people and governments throughout the country.

The issues related to implementation of GST were classified in two categories:
The Reluctant Attitude of the States: The first major problem that came into light is the reluctant attitude of some state governments with the implementation of this bill. Most of the state governments have a fear of losing out funds/money despite the central government's proposed tax revenue sharing program.
Logistics: Both the state and the central government has to implement GST simultaneously. But Central governments due to the lack of constitutional authorization to raise tax without acceptance by the state governments, is at the mercy of the latter for the implementation of GST.

Posted on Dec 27, 2017


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