At a time when India’s Goods and Services Tax (GST) regime is at a critical juncture, experts, administrators and practitioners at an ICSSR-sponsored seminar organized by the Center for Economic and Social Studies (CESS) in Hyderabad on Thursday called for a careful balance between facilitating compliance and securing revenue.
The keynote address titled “GST Reforms: Socio-Economic Implications” was delivered by M. Ragunandan Rao, Commissioner of Commercial Taxes, Telangana.
He described GST as a “work in progress”. He emphasized the philosophy of the “Trust-First” system and noted that 95% of taxpayers operate without intrusive control. He also highlighted the digital transformation driven by the GST network, calling it one of the country’s most significant digital products and a “digital highway” for the economy, comparable in scope and impact to Aadhaar and the railway reservation system. He also pointed out structural issues like the ‘One Tax Two Administration’ model and stressed the need for more research to see if the main objectives of GST have been fully achieved.
K. Ravi, Joint Commissioner of Business Taxes, identified three main pillars of the reform. These include structural fixes aimed at a “reverse tariff structure”, particularly in sectors such as textiles and fertilizers where inputs are taxed at higher rates than finished products. He also talked about rate rationalization with a shift to a simplified two-slab structure of 5% and 18%, while luxury and “sinful” goods will continue in the higher bands.
Roopa Sowmya, Joint Commissioner, Commercial Taxes, warned of an “alarming” rise in suspicious registrations. Although the three-day approval window facilitated genuine business activity, she warned, it was also being abused by fraudulent entities to create fake invoices, leading to revenue leakage.
Published – 30 Jan 2026 0:12 IST
