Some Problems With the Indian Goods and Services Tax

15 Pages Posted: 3 Jan 2019

Multiple version iconThere are 2 versions of this paper

Date Written: October 30, 2018


The objective of this essay is to examine and explain possible drawbacks of the goods and services tax (GST) introduced in India on July 1, 2017. To get a comparative picture of its vulnerability to tax evasion, data for the OECD countries in the 1990s and also the Indian state VAT earlier this decade are first looked at. The tentative conclusion buttressed by recent newspaper stories is not encouraging.

The essay goes on to raise doubts about the suitability of the GST for India. This is followed by a look at the complex structure of the Indian GST which can result in negative GST rates for some goods or services. The coordinated examination and reform of India’s Central and state GST administrations, overseen by the GST Council is then discussed. It is pointed out that the reforms are still ongoing despite over a year having elapsed since GST was introduced. Some key pending reforms are identified.

Keywords: Value Added Tax, Goods and Services Tax

JEL Classification: E62, E63

Suggested Citation

Das-Gupta, Arindam, Some Problems With the Indian Goods and Services Tax (October 30, 2018). Available at SSRN: or

Arindam Das-Gupta (Contact Author)

Goa Institute of Management ( email )

Ribandar, Goa 403006
91-832-2490300 (Phone)


Do you have negative results from your research you’d like to share?

Paper statistics

Abstract Views
PlumX Metrics