tax

• What is the incidence of indirect tax in India?
  
• According to Vijay Kelkar, if you add various local taxes to VAT at the central and state level, the incidence of indirect tax today is close to 30%.
  
• The best fiscal stimulus that can be delivered is by reducing the total incidence of indirect tax from 30% to a single GST rate of, say, 17%.
  
• The 17% GST can be shared in the ratio of 4:4:2 between the Centre, states and the local civic bodies. According to Kelkar the economic value of this GST reform could be $500 billion and has an employment potential of 4-5 million.