Amidst economic crisis across the globe, India has posed as a beacon of hope with abitious growth targets, supported by slew of strategic mission like ‘Make in India’, ‘Digital India’, etc. Goods and Service Tax (GST) is expected to provide the much
needed stimulant for economic growth in India by transforming the existing basis of indirect taxation towards free flow of
goods and services within the economy and also eliminating the cascading effec of tax on tax. In view of the important role
that India is expected to play in the world economy in the years to come, the expectation of GST being introduced is high not
only within the country, but also in neighboring countries and in developed economies of the world.
Impact of GST on Indian Economy
Reduce tax burden on producers and foster growth through more production. This double taxation prevents manufacturers from
producing to their optimum capacity and retards growth. GST would take care of this problem by providing tax credit to the
Various tax barriers such as check posts and toll plazas lead to a lot of wastage for perishable items being transported, a
loss that translated into major costs through higher need of buffer stocks and warehousing costs as well. A single taxation
system could eliminate this roadblock for them.
A single taxation on producers would also translate into a lowr final selling price for the consumer. Also, there will be more
transparency in the system as the customers would know exactly how much taxes they are being charged and on what base.
GST would add to government revenues by widening the tax base.
The introduction of Goods and Services Tax would be a very noteworthy step in the field of indirect tax reforms in India.
By amalgamating a large number of Central and State taxes into a single tax, it would alleviate cascading or double taxation
in a major way and pave the way for a common national market. From the consumer point of view, the biggest advantages would
be in terms of reduction in the overall tax burden on goods and services. Introduction of GST would also make Indian products
competitive in the domestic and international markets. Last but not hte least, this tax, because of its transparent character,
would be easier to administer. However, once implemented, the system holds great promise in terms of sustaining growth for the