GST a step closer to reality

The passage of key legislation through the Lok Sabha marks another important step towards implementation of the Goods and Services Tax (GST). The legislation also provides greater clarity on the exact form the GST will take. While it isn’t perfect, it should prove more efficient and encourage more compliance than the convoluted tax system currently in place. When finally implemented, the long-awaited Goods and Services Tax (GST) in India will replace the current jumble of more than a dozen state taxes. This could bring huge benefits to India’s economy by simplifying the tax system and facilitating domestic trade. In turn, there should be a boost to central government tax revenues, which have fallen short of official targets in recent years.