Understanding the Basics of Goods and Services Tax (GST) in India
Introduction The Goods and Services Tax (GST) represents a groundbreaking reform in India's indirect tax system, aimed at unifying the nation’s diverse tax structure into a single, streamlined framework. By consolidating multiple Central and State taxes and enabling seamless credit for taxes paid at prior stages, GST eliminates the cascading tax effect, creating a more transparent and efficient tax environment. One of the most profound advantages for consumers has been the reduction in the overall tax burden on goods, previously estimated at 25%-30% , which has enhanced affordability and purchasing power. For businesses, GST fosters competitiveness by reducing production costs and aligning India with global trade standards. Studies suggest that the introduction of GST has the potential to boost economic growth significantly, driven by a widened tax base, increased trade volumes, and improved compliance. Additionally, its transparent design simplifies administration, making it a g...