This refers to the reformative step the Union Cabinet has taken by clearing the constitutional amendment Bill on Goods and Service Tax not only aimed to raise revenue and boost growth, but also to ensure uniform and uniform price-structure for various commodities for consumers throughout the country. It is grossly unfair that consumers in different States have to pay different prices with wide gaps due to varying rates of State and local taxes. However, the tax reform should have been in one go. The Bill presently defers commodities like petrol and liquor, which will be brought under uniform pricing at a later stage.
India has a federal structure, with States usually expressing fear of the Centre intervening in their domain. With the Union Minister for Finance approving the release of Rs11,000 crore as compensation for the loss on account of Central Sales Tax, and assuring fair distribution of tax after implementation of the GST, the States should now cooperate.