GST 2.0 and the states’ squeeze

When the Goods and Services Tax (GST) was introduced in July 2017, it was hailed as India’s biggest tax reform, a move towards ‘one nation, one tax’. Seven years on, as the GST Council prepares to discuss the contours of ‘GST 2.0’, the initial optimism has been tempered by the reality of its impact on state finances. While the GST regime has undeniably streamlined the indirect tax system, improved…