Goods And Services Tax IMAGE.
strongBy R Jagannathan/strong
We know Pranab-da left a troubled legacy for Manmohan Sing to fix - including the retrospective Vodafone legislation, and the General Anti Avoidance Rules (GAAR), which have so riled investors.
But did he also leave several financial time-bombs that will have to be defused?
One of his last acts as finance minister was to okay a compensation of Rs 20,000 crore to states for losses on the central sales tax (CST) - a tax on inter-state movement of goods. This is a tax that states promised to eliminate provided the centre compensated for it. The centre hasn't so far done this, and has used non-payment as a lever to ensure that states sign up to the new reform - the Goods and Services (GST) tax - first.
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