As soon as the Center approves the final payment of GST compensation to the states, the new tax system will have abandoned its early support. The adjustment may be challenging for some states. Nonetheless, monthly GST receipts across the country have stabilised at around Rs 1.5 lakh crore, with room for growth through rate rationalisation and expanded coverage. Since the introduction of the GST, the weighted average tax rate has been falling; this trend can be stopped by lowering exemptions and reversing duty inversion.
States have finally grown up with the GST.
