An efficient #GST with high boyancy, needs uniform 15% rate on 3/4th of Goods & services, exemption(0%) on basic food, drugs, health services & education(~1/10 of G&S), & higher rates (avg 30% inclusive of cess) on cigarettes & Autos(~1/10th). Drop higher revenue/rate obsession 
2/gst The #GSTcouncil's obsession with immediate revenue raising by increasing rates, is damaging macro economy, by negatively impacting MSME/informal employment, income & consumption, and doing long term damage to inclusive growth and sustained higher revenues for development
3/gst Though in normal circumstances I recommend revenue neutral reform, in current depressed environment, revenue negative reform of GST is preferable to revenue positive GST reform, because it will provide a demand stimulus which will quickly recover the short term revenue loss
4/gst Over time, tax revenues will also increase because of reduced tax evasion arising from (1) lower compliance costs due to simplification of accounts, (2) Easier monitoring & detection of evasion, due to simplification of forms, weekly updating of data & simplified analytics
5/gst These ☝🏼policy recommendations are based on a detailed research paper, "#Goods and #Services #Tax: Structural #Reform," June 2020, at egrowfoundation.org/research/goods…
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