Is ‘one nation one tax’ GST scheme a success in India? - Letsdiskuss
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Rohan Chauhan

Financial analyst (Mudra finance company) | Updated 07 Aug, 2018 |

Is ‘one nation one tax’ GST scheme a success in India?

Vikas joshi

Sales Executive in ICICI Bank | Posted 02 Jul, 2018

The question that is the one nation one tax system successful in India remains ambiguous even after more than a year of its implementation. Almost every day we witness some or the other news related to this ambitious project of Indian government. The current trends tell us that this system is far from being successful. According to the latest reports, the system does not cease to be doubtful even after a year of its implementation. The businesses are witnessing quite a lot of problems and even the GSTN site is deemed to be unreliable and unresponsive. Businessmen are facing many problems like difficulties in filing GST returns, lack of response from the GST helpdesk, increase in accounting costs post GST, and so on. Statistics show that:


1. 50% people find it difficult to log in and submit info while filing GST returns.

2. 69% say that GST helpdesk does not give any response and 24% get acknowledgment but no response.

3. 74% people have experienced a monthly increment in accounting costs post GST.

4. 50% people find the compliance in new system is more time consuming than it was.

Shekhar Chandra

@letsuser | Posted 30 Jun, 2018

No doubt the ‘one nation one tax’ scheme has plenty of flaws. And there’s a big room for improvement.


However, there are many things to be happy about. ......


For once, the fact that India does have a single market tax structure like this is a good thing to start with. Second, when the reform was rolled out, the biggest contention of the challengers was that it could possibly fuel inflation in the country. However, courtesy of a multi-slab system that ensured there isn’t any drastic change in the tax rate of many commodities, this paranoia turned out to be just another buzz with no substance. Inflation didn’t rise. Indeed, in return, unemployment did get worse, but that’s a different topic altogether. 


Introduction of GST also encouraged formalization of the economy. However, in lack of proper data, one cannot exactly say how effective the measure was/is in doing that. After all, demonetization promised the same but it failed miserably.


Additionally, the tax system also helped in streamlining production, chain supply, and storage, which made them even more efficient. And, above all, it dismantled as many as 17 taxes and multiple cesses to ease the burden off on business owners as well as the consumers. In short, GST is a crucial step towards a simple, transparent economic system where the tax structure is fairer to all.


But then again, the implementation of this reform, as is widely criticized, was poorly executed. And what was supposed to be a simple structure, it turned out to be extremely complex. Business owners struggled in the registration process, there are ample of loopholes in compliance, going against the narration of ‘one nation one tax’ multiple cesses have come up, there are problems in a refund for exports, and most importantly, there are still many things that are not in the GST net. 


If the government is really serious about this reform, it must take immediate steps for improvement.


For the starters-


  1. The tax rate should definitely be cut down
  2. The number of tax slabs should be reduced
  3. There are a lot of things that need to be fixed on the IT front
  4. Above all, the business owners – as well as consumers – must be taught well about such reforms.


After one year since the rollout of this ‘one nation one tax’, we now have a pool of data and feedback. The government can use them effectively and make necessary amendments easily.  

Preeti Taneja

Entrepreneur | Posted 28 Jun, 2018

It’s nearly a year since we saw ‘one nation one tax’ reform come into effect. Here’s what the World Bank has to say about it (in one of its reports):


“The tax rates in the Indian GST system are among the highest in the world. The highest GST rate in India, while only applying to a subset of goods and services traded, is 28 percent, which is the second highest among a sample of 115 countries which have a GST (VAT) system and for which data is available.”

This observation from one of the world’s most reputed institute is a clear mirror to what we wanted ‘one nation on tax’ to be and what it is in reality.

In the garb of ‘reform’, BJP pushed this tax scheme in haste. It was bound to be a failure for the unpreparedness and ineffective implementation. And more important, it came just months later after the ‘organized loot’ demonetization when people were still recovering from the biggest economic shock. This ‘one nation one tax’ pushed the business owners to the edges.

While you may not have seen it on TV because, well, the news channels were busy bootlicking the government, soon after this GST reform was introduced, millions of SMEs across the country were protesting against it. In PM Modi’s own Surat, business owners staged protests for months. Here’s a video of textile traders taking it to the streets to voice against this tax regime— (VIDEO) 


Talking facts, there are many flaws in our one nation one tax reform.

· The tax rates are too high; one of the highest in the world.

· Many changes in the tax rates – likely for political reasons – that creates many confusions.

· Too many tax slabs, which is another big source of plenty of confusions.

· Small business owners do not want to pay GST as they cannot charge from the customer.

· Many things are still out of GST (real estate, petroleum products) 

Yes, hate it as much, the much promising one nation one tax – that could have really transformed the tax system of India – is a failure due to political reasons and government’s inefficiency. Sure, it could change. In fact, hopefully, the government tax necessary actions to fix the loopholes and strengthen this tax structure.