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What is the primary reason for the resistance of most states towards modifying the existing GST rate slabs?
  • a)
    Fear of Revenue Loss
  • b)
    Political Considerations
  • c)
    Complexity and Confusion
  • d)
    Anomalies in Taxation
Correct answer is option 'A'. Can you explain this answer?
Verified Answer
What is the primary reason for the resistance of most states towards m...
Many states are hesitant to alter the existing GST rate slabs primarily due to the fear of revenue loss. Changing the structure could potentially impact their revenue streams, leading to concerns about financial stability and resource allocation. This apprehension often influences states to prioritize short-term revenue security over potential long-term benefits that could arise from restructuring the GST system.
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