The Current Indirect tax regime is quite complex. Central and State Governments levy a large number of taxes such as Central Excise duty, Service Tax, VAT, Purchase Tax, Central Sales Tax, Entry Tax, Local Body Taxes, etc.
In this each of them is an independent tax with separate requirements and differing provisions. This creates complexity and makes it difficult for the taxpayers to the legal requirements. The different tax systems are also not inter connected. To simplify this tax regime, the Goods and Services Tax (GST) will be implemented across India from 1st July 2017.
GST will give a major boost to the Government of India’s ‘Make in India’ initiative by making goods or services produced or provided in India competitive in the national and international markets.
GST will also improve India’s ranking. The introduction of GST is estimated to contribute 1.5% to 2% additional GDP growth.