GST is\nthe single biggest tax reform undertaken by India in its 70 years of\nindependence. In one stroke, it has converted India from a collection of\ndifferent markets (i.e. states) with internal tariff barriers to a unified\nmarket governed by one single tax, i.e. GST. Its implementation is all set to\nbreak the existing barriers between states and make the movement of goods\nbetween different states easier.<\/p>\n\n\n\n
Earlier,\nthe central government used to tax the production of goods and supply of\nservices, while states taxed sale of goods but not the supply of services. Post\nGST, both the central and the state governments get to share the taxes of the\nfull value chain of goods and services.<\/p>\n\n\n\n
But to be\nfair, it is also true that such a massive switch to a new tax regime is not\neasy. It will take time to smoothen out the glitches and full adoption. In\nfact, the introduction of GST is just a start. Once the ball gets rolling,\nthere is a lot more to be done. Further streamlining is absolutely necessary to\nmake the system more robust and efficient.<\/p>\n\n\n\n
Government\ntoo is using GST as a big tool to achieve various goals simultaneously.\nPromotion of the manufacturing section, giving boost to the exports by making\nproduction more competitive, job creation, bringing more people and businesses\nunder the tax purview, steady formalization of the economy, lowering of\ncompliance cost for the business, etc. as slowly these agendas are taken care\noff, the country will become more attractive for foreign investments too.\n\nGST\nis all set to change the economic landscape of the country. And as it\neventually becomes evident, it will have a dramatic impact on most of the\nsectors of the economy. It won\u2019t be wrong to say that this is the gamechanger\nmove for the economy and is all set to add 1-2% to country\u2019s GDP in long term.\n\n\n\n<\/p>\n","protected":false},"excerpt":{"rendered":"
GST is the single biggest tax reform undertaken by India in its 70 years of independence. In one stroke, it has converted India from a collection of different markets (i.e. states) with internal tariff barriers to a unified market governed by one single tax, i.e. GST.<\/p>\n