Former CEA Arvind Subramanian criticizes GST Council for fostering tax issues in India

Former Chief Economic Adviser Arvind Subramanian criticized the Goods and Services Tax (GST) Council for focusing on rate cuts and exemptions instead of simplifying the tax structure. He expressed concern that this approach has led to increased "tax terrorism" in India. Subramanian noted that the GST rate was reduced from 15.5% to 11%, but he believes that raising rates on some items is necessary for revenue growth. He highlighted that the political dynamics of the GST Council have not worked as intended. He pointed out that the GST has led to excessive tax demands, which he attributes to the increased data available to governments. Subramanian emphasized the need to address the issue of "tax terrorism" that has emerged under the GST regime.