New Delhi: The GST was in the making for over a decade, initiated during the UPA regime but fast-tracked by the Modi government.
It amalgamates a large number of the central and state taxes into a single act, mitigating the effect of the cascading or double taxation in a major way, paving way for a common national market with no taxes on the boundary of every state. It will indirectly benefit the common man in terms of the reduced tax burden, especially on the daily consumer items.
The GST will also help in the government’s promotion of “ease of doing business” climate in the country. Officials claim it will make the Indian products competitive in both domestic and international markets and boost the economic growth.
The government’s estimate is that the GST law will lead to an increase of the Gross Domestic Product (GDP) by one to two per cent, creating more employment and productivity. Moreover, the GSST regime will bring in more transparency and efficiency with minimisation of the human interface in the tax administration and reduction of the tax evasion because of the computerisation and digitisation of the taxation process, leading to increase in revenue collection of both the Centre and the states.