Goods and Services Tax (GST), which is the biggest tax reform in India after independence, has been the talk of town to bring all state taxes and other levies under one umbrella. However, turns out that states have managed to retain at least one-third of their revenue sectors, thus continuing to charge consumers outside the regime.
As per a survey done on projected tax collection in 17 states in 2017-18, conducted by Motilal Oswal Securities- the sectors of Alcohol, Real Estate and Petroleum, Oil & Lubricants account for 37% of the tax revenue owned by these states, and are cash cows, which can yield revenues for states as and when tweaked.
Not only this, Alcohol and Real Estate also generate significant black money and illegal trades, burning holes in the pockets of consumers.
Even after GST would be implemented, consumers would be kept away from the benefits coming from one-third of the states’ economy!