By KJ Joseph & Kiran Kumar Kakarlapudi

With the goods and services tax reforms (GST 2.0) having been rolled out as a Diwali gift, the moot question is, how does it affect the tax revenue, especially of the states? It is generally understood that our tax base is at least 7% below its potential. While the reforms cannot be delinked from the plausible adverse effect of Donald Trump ’s tariffs, their effect on consumer prices and the stimulatory effect on domestic demand and GDP growth also deserve careful scrutiny.

It was with great expectations, including those of an expanded tax base and enhanced GDP growth , that the India-specific GST paradigm was implemented. Even after discounting the price paid for its hasty implementation, much has been accomplished—India is now a common marke

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