GST is failing its fiscal target—aggregate revenue from GST-subsumed taxes has plummeted from 6.5 percent of GDP (pre-GST) to 5.5 percent, falling short of the 15th Finance Commission’s 7 percent target. A new report by PRS shows that as state SGST averages lag historical norms, GST's destination principle is creating fiscal winners and losers. The September rate restructuring was intended to streamline rates and boost consumption.
