Introduction of GST would be a very significant step in
the field of indirect tax reforms in India. By amalgamating
a large number of Central and State taxes into a single tax
and allowing set-off of prior-stage taxes, it would mitigate
the ill effects of cascading and pave the way for a common
national market. For the consumers, the biggest gain would
be in terms of a reduction in the overall tax burden on goods,
which is currently estimated at 25%-30%. Introduction
of GST would also make our products competitive in the
domestic and international markets. Studies show that this
would instantly spur economic growth. There may also be
revenue gain for the Centre and the States due to widening
of the tax base, increase in trade volumes and improved tax compliance. Last but not the least, this tax, because of
its transparent character, would be easier to administer.
