Commodity Taxation in India

This project examine cross‐country comparisons on commodity taxation in Bihar for 1994‐2012. The findings of the project suggested that the VAT reforms went a long way to harmonizing rates across states, but some challenges remain. Goods which tended to remain under a partial or full sales tax regime (such as petrol) continue to exhibit large variation across states. Bringing these goods under a GST system may be particularly challenging. In addition, individual states may wish to retain particular tax preferences for certain products or industries.

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