GST will increase revenues for consuming states and decrease revenue for manufacturing states. The government will compensate the manufacturing rates for the revenue loss. That's how all states agreed to a GST. This difference will ultimately come out from tax payers pockets. Basically, the tax payer pays for the government unable to handle compliance.
Anyways, there are many products kept out of the GST purview [0] and therefore, this is like release 0.1a of GST. The idea that it will spur economic growth with the projections given is an exaggeration.
Anyways, there are many products kept out of the GST purview [0] and therefore, this is like release 0.1a of GST. The idea that it will spur economic growth with the projections given is an exaggeration.
[0] http://www.hindustantimes.com/india-news/gst-adding-to-econo...