With the introduction of GST, a consumption-based tax, the entire tax revenue of State Goods and Services Tax (‘SGST’) goes to the consuming State. This has a created big fiscal imbalance for producing States and windfall for the consuming States. To that extent, the producing States indeed gave up a considerable chunk of their taxation powers when they assented to this new taxation regime. In order to bring the States onboard with GST, the Centre promised to compensate them for losses in their revenue. After more than two years of introduction of GST, the Centre is struggling to keep up its end of the bargain in the midst of a slowing economy and having achieved only 50 per cent of its annual GST collection.

Through this article, our Managing Partner, Mr. Puneet Bansal and Associate, Ms. Sneha Ghosh have tried to delve into the possibility of GST roll-back.

Please click on the link below to read our article titled “A discussion on the possibility of GST Roll-back in the wake of Centre-State disputes “ on the issue.

A discussion on the possibility of GST roll-back in the wake of Centre-State disputes