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One nation, one tax: why the next phase of GST reform must restore the federal compact

One nation, one tax: why the next phase of GST reform must restore the federal compact

One nation, one tax: why the next phase of GST reform must restore the federal compact



States gave up agency over local taxes to help India achieve a single national tax, but the end of the GST compensation guarantee has left many of them fiscally vulnerable. The country must forge another grand Centre-state bargain to ease state anxieties over revenues before widening the GST net.