IMPORTANCE OF GST
Mr Jackson, the 7th President of the United States, speaking as early as the beginning of the 19th century, wasn’t too far away from the truth. Clearly, there are different taxation regimes in place across the world, as in India,
The wisdom of man never yet contrived a system of taxation that would operate with perfect equality
Mr Jackson, the 7th President of the United States, speaking as early as the beginning of the 19th century, wasn’t too far away from the truth. Clearly, there are different taxation regimes in place across the world, as in India, which unsurprisingly enough make it less profitable to run businesses in one state, but profitable in another. The inequality can be exasperating, especially for those potential investors and business conglomerates that are looking closely at making their presence felt through Make in India and other Mission Mode projects.
Also at this point in time, with the world’s diplomatic community watching India closely—and India too engaging world leaders like never before—it is imperative that the country demonstrates its resolve for structural reforms by implementing the Goods and Services Tax (GST) at the earliest opportunity.
There is absolutely no doubt that one of the major impediments to running of smooth businesses, especially in the manufacturing sector, is the uncertain and unpredictable indirect tax regime. The implementation of the GST would result in the abolition of multiple taxes, and bring in much needed uniformity and certainty in tax rates. It would ensure that tax at each stage is creditable, thereby, avoiding double taxation. Besides, manufacturers will then be required to deal with only three laws.