The Goods and Services Tax (GST), for long derided as a “not so good or simple tax”, is finally facing the reform axe. The recent slab announcements for rollout in October, are being hailed as a landmark effort to simplify one of the world’s most labyrinthine tax regimes.

By lowering rates on essentials, the government aims to make household goods more affordable, stimulating consumer spending, especially during the frenzied buying season in the run-up to the Diwali festival, when the tax rolls out. However, for all its promise, this reform risks turning into a textbook case of poor timing and policy execution, setting the stage for avoidable supply chain distortions, hoarding, and sticky pricing.

The core mistake lies in announcing the new GST rates far in advance of the taxes being implemented. Prior Indian as well........

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