Does GST also mean one nation one dosa one price? In this Livemint article, Praveen Chakravarty, Visting Senior Fellow at IDFC Institute, explores the government's attempt to control post-GST prices of goods and services through an 'Anti-Profiteering Authority of India'. Excerpts below:
"There is much consternation among policy analysts and economists over multiple GST rates rather than just one rate for all goods and services. Poetic as it may have been, a “one nation, one tax” was never possible in a diverse and complex federal polity, such as India. Multiple taxes were inevitable to assuage India’s 3-3-3 paradox—the three richest states being three times richer than the three poorest states.
Instead, what should enrage economists and commentators is this potential throwback to the 1960s. Phrases such as “anti profit”, “authority”, “expect cooperation from businesses”, “weapon”, etc., bandied about in public by one of India’s senior most bureaucrats, is unbecoming of a nation that just celebrated its silver jubilee of “economic liberalization”. The last time India had an anti-profiteering legislation was the West Bengal Anti-Profiteering Act of 1958..."
Read the whole article here.