Introduction of Goods and Services Tax (GST) is the most important reform of indirect tax system in the country, made possible by Constitution (One Hundred and First Amendment) Act, 2016. Indirect tax structure in India is highly complex with hidden costs for trade and industry. Non uniformity across the States, cascading of taxes due to ‘tax on tax’ and multiplicity of taxes in the current tax laws are huge deterrents for the businesses. Introduction of GST will simplify the system, broaden the tax base and improve tax compliance.
Impact of GST’s introduction will be felt by all the sectors of Indian economy. Although its benefits will start flowing right from the beginning, various stakeholders need to be familiarized with the new taxation system to ensure smooth transition. Senior government officials can contribute to this in a major way by educating the different stakeholders.