The goods and services tax or simply the GST has been introduced in India to reform the current tax structure which is complex and complicated. The main purpose of GST is to reduce the multiplicity of taxes. The cascading effects of double taxation due to unnecessary laws can be dealt with GST. One of the biggest achievements of GST will be the expansion of exports increasing the revenue of the nation. The simple tax regime will bring forth simple price structures decreasing the prices of goods and services. The GST is poised to bring transparency in taxation system and also increasing the employment opportunities throughout India.
One of the main key features of the GST is the compensation plan for the loss of revenue to states for 5 years. All the goods and services will come under this plan except for alcohol for human consumption. The GST will become the destination based consumption taxation which will apply to all goods and services against its manufacture, sale and or services.
The GST will impact the GDP growth rate of the country by increasing it many folds over the coming future. GST will also increase the growth of interstate as well as the inter-country growth of trade amongst the businesses.