Here’s why GST is expected to be a game changer -Governance Now

Here’s why GST is expected to be a game changer

GST is the largest tax reform in India

GN Bureau | June 30, 2017

#GST #Goods and Services Tax #RBI #Reserve Bank of India #tax laws

The Goods and Services Tax (GST) is expected to be a game changer.

According to the RBI, GST is the largest tax reform in India, paving the way for a single national market by merging several central and state taxes

Listed below are some of the benefits of GST:

Easy compliance: a robust and comprehensive information technology (IT) platform and seamless transfer of input tax credit from one stage to another in the value chain would incentivise tax compliance.

Uniformity of rates and structure: GST will ensure that tax rates and structure are common across the country, thereby increasing certainty and ease of doing business.

Removal of cascading: seamless tax credits throughout the value-chain and across states would ensure minimal cascading of taxes, thus reducing hidden costs of doing business.

Reducing compliance cost: The uniformity in tax rates and procedures across the country will economise on compliance cost.

Gain to manufacturers and exporters: the subsuming of major taxes in GST and reduction in transaction costs would lower the cost of locally manufactured goods and services and increase India’s export competitiveness.

Improve tax administration: with a robust user-friendly IT system in the form of the Goods and Services Tax Network (GSTN) portal, GST would be simpler and easier to administer.

Higher revenue: GST is expected to reduce the cost of collection of tax revenues and improve revenue buoyancy.

Single and transparent tax: there would be only one tax from the manufacturer to the consumer leading to greater tax transparency.

Relief from tax burden: efficiency gains and prevention of leakages will benefit consumers with a reduction in the overall tax burden estimated to be around 25-30 percent.

Comments

Other News

BJP set to capture West Bengal

The political map of the country is set to be redrawn with the BJP set to win the West Bengal assembly elections, apart from Assam and the union territory of Puducherry. In Kerala, meanwhile, the Congress-led UDF is set to regain power. The filmstar Vijay-led TVK has emerged as the front-runner in Tamil Na

Beyond LPG: Is PNG ready for India’s next cooking fuel transition?

India, the second-largest importer and consumer of LPG after China, faces growing pressure due to supply constraints. Most of India`s LPG imports transit through the Strait of Hormuz, a focal point of global turmoil. Given that LPG forms the backbone of household kitchens and the restaurant industry, any s

Maharashtra adopts hybrid model for Census 2026 data collection

The government has initiated preparations for Census 2026 in Maharashtra, introducing a hybrid approach that combines optional self-enumeration with comprehensive door-to-door data collection to ensure complete coverage across the state. According to senior officials, the Self-

What the nine Indian Nobel winners have in common

A Touch Of Genius: The Wisdom of India’s Nobel Laureates Edited by Rudrangshu Mukherjee Aleph Books, Rs 1499, 848 pages

Income Tax dept holds Ghatkopar Outreach on new IT Act

The Income Tax Department organised an outreach programme in Ghatkopar, Mumbai, to raise awareness about the key features of the Income Tax Act, 2025, effective April 1, 2026. The initiative is part of a nationwide effort to promote taxpayer awareness, simplify compliance, and strengthen a transparent, eff

Making AI work where governance is closest to people

India’s next governance leap may not solely come from digitisation. It will come from making public systems more intelligent, more adaptive, and more responsive to the dynamics at the grassroots. That opportunity is especially significant at the panchayat level, where governance is not an abstract po