Demonetisation decision casts its shadow on the rollout of GST by Sep 16, 2017

The FM said investors would be careful of choosing states if they are seen to be on the wrong side of reforms. “The states must welcome the decision and I can only tell you, if some states are seen as opposing every reform, then investors in the country and the ones coming from outside, must decide which are the states they want to invest in,” he said.

The political fallout of the demonetisation decision has cast its shadow on the rollout of GST. The GST Council is meeting in the national capital to finalise the GST laws and decide on the issue of dual control. States such as West Bengal have said that they are wary of implementing the new tax regime in the aftermath of demonetisation as this might destabilise the economy and may emerge as a “second blow” at this juncture.