Required reforms On reforms to the GST system Beyond Borders By Prajila
The Hindu editorial on 19/08/2025 welcomes the Centre’s decision to reform the GST system, calling it a bold and timely move. It argues that, despite a loss in tax revenue, this will increase consumption and thereby boost the economy in the time of uncertain tariff imposition by the USA. As there will be a steep reduction in the tax burden, it will benefit the middle class and the business community. Since most goods now fall under only two slabs, it makes the system more transparent. The editorial emphasizes the importance of procedural reforms related to registration, return filing, and refund, which are already included in the proposal. A potential challenge is that the state governments may demand further compensation for their revenue loss. The editorial concludes that the center must address the concerns of the state government.