Supply Rules Under the Proposed 'Goods and Service' Tax in India : Issues to Be Resolved

The reform process for the indirect taxation regime in India has been ongoing for some time, with the prevailing view being that simplification of tax regime and a principle-laden approach was an essential concomitant in the outlook of a developed nation. Much debate has ensued and during the last year the stake-holders were aware of the basics of the proposed regime with release of a Discussion Paper and three expert reports on the issue. However certain key issues elude consensus even now and this paper deals with one such critical issue namely the 'Supply Rules'. The discussion assumes importance in the wake of the developments in the last couple of years, which this paper highlights, and their bearing on the ongoing negotiations between the Central and State level Governments working on the details of the proposed regime