Unfortunately, one of the major symbol of Economic reform, GST, an integrated unified indirect tax regime, is proving to be another big fiasco for the economy just like demonetization been brought 10 months back. What the reports and situations are being looked upon, it has created a big unsettled economic regime for all of us. The reason is not that the GST is bad, the bad is its preparatory mechanism. GST council still looks completely confused and clueless. sometimes items are being included in one list, sometimes it is included in another list. There is complete anomalies while picking the items while putting them in any tax slab. Sometimes there is repetition, sometimes it is going all alone. First of all, all items must have been considered, what were their earlier tax status and how their status gets changed under new GST regime, it should be considered accordingly, but without considering these, things are being put in in blind manner. There must be logic and consideration of end effect over the price of any items, while keeping them under any tax slab of GST.
i think, what items will be covered under GST regime, it is also not clear cut. Despite the coming of GST, grey areas are still widely open, which is jeopardizing the revenue generation of the governments. Out of these scenario, the state governments will suffer more, because petroleum products taxation has not been put under GST, which is the major source of tax income of centre.And central government has created already its safety net through hiking the tax rates being imposed over all petroleum products, that is why people in spite of lower crude oil prices, paying more for the petrol and diesel.