(b) One form of Indirect Tax getting rid of so many offshoots at both central and state level
While over the decades the tax structure has become increasingly more rational (and it continues to move in that direction) little or nothing seems to have been done to fix the babus for whom corruption has settled in as a culture. And this remains the biggest question mark on how successful will GST be in preventing tax evasion.
Many readers will jump on me when they read the above criticism about tax evasion. The counter is that the GST is being implemented on a digital backbone of Internet based reporting and reconciliation system which will make tax compliance almost a compulsion and will also help track tax evaders better.
In short, the government must focus on ensuring that the Babudom does not abuse the new found authority they have otherwise there is great risk of the intent going haywire. In my humble opinion the bureaucracy remain the biggest risk to the success of the GST.
One of the goods of the GST is that it brings about fundamental changes in the way both businesses and government deals with indirect taxes. It is like we are recreating the taxation regime into something all new.
The BJP and its "chankya" is counting heavily on the support of the young and impatient population of the country who are voting for it. The BJP has been successful in doing that till now as most elections have shown till now. So as long this particular segment of the voters are solidly behind the BJP they have little to worry about winning elections. The midnight launch of the GST is just one more of the series of events that gets unveiled to keep this section of society engaged and hopeful. Remember the Lion of "Make in India" unfurled and maintained for more than a year in these young minds. It has been gradually shifted to new symbols and new slogans because that works best with is segment. They forget and move on easily - the Fast Track generation.