The 'one nation, one tax' was in making for over 17 years. "The implementation of a GST came alongside a range of measures, including at temporary tax amnesty scheme, demonetization, and measures to strengthen tax administration and the ease of doing business, which will contribute to improving tax collection and broadening the government's tax base over time," Moody's said in the report.The government, it said, in the Budget for 2018-19 introduced several additional measures to broaden India's tax base. "Overall, the government anticipates gross tax revenue of 12.1 per cent of GDP for 2018-19, an increase from 11.2 per cent of GDP as of 2017-18. For India, this was the result of replacing a system of taxation at multiple points of production with taxation at a sole point. "Overall, indirect revenue mobilisation is likely to be most effective in the Philippines, India and Sri Lanka, as these economies benefit from ongoing reforms," Moody's said.

Source: Economic Times May 31, 2018 10:51 UTC