Why GST is Needed
It will simplify India's tax structure, broaden the tax base, and create a common market across states.
- It is estimated that GST can boost India’s GDP by 1-2 per cent.
- GST will convert the country into unified market, replacing most indirect taxes with one tax.
- GST is expected to provide the benefits of simplification of tax regime,broadening of tax base, elimination of tax cascades, enhancing export competitiveness, ensuring greater regional equity, and improvement in transparency.
- GST is a Value added tax, i.e., the final consumer will bear only the GST charged by the last dealer in the supply chain, with set-off benefits at all the previous stages.
- GST has become a preferred global standard. All OECD countries, except the US, follow this taxation structure.
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