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GST: Cooler heads for constructive ends

To be sure, the cooperative spirit has gone missing since about 2018, reflecting the heavy-handedness of the Centre, not just on the GST but across a range of issues

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Josh FelmanArvind Subramanian
The goods and services tax (GST) is once again fuelling impassioned debate, this time stoked by a controversial Supreme Court ruling. Questioning the very idea of the GST is gaining wider currency. That’s understandable since the tax has generally generated less revenue — and much more discord between the Centre and states than anyone expected. But the GST is beginning to fulfil its potential as a buoyant revenue source. And there are ways to reduce Centre-state friction. It’s consequently imperative that cooler heads prevail and compromises be found that will restore the workings of the cooperative GST system.

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