Should States be compensated for revenue loss from GST reforms?

During his Independence Day speech, Prime Minister Narendra Modi announced a “Deepavali gift” to the people in the form of next-generation Goods and Services Tax (GST) reforms. The Ministry of Finance subsequently said that a large part of these reforms involved moving GST from the current four-tier system to a two-tier structure of 5% and 18%, along with an overall lowering of the average tax rate. What impact will this proposal have on revenues? And should the States be compensated for revenue loss? Here we discuss the question Guests: Manoj Mishra, Partner at Grant Thornton Bharat; Pratik Jain, Partner at Price Waterhouse & Co LLP Host: T.C.A. Sharad Raghavan Edited by Jude Francis Weston Learn more about your ad choices. Visit megaphone.fm/adchoices