Calling the implementation of country-wide goods and services tax (GST) as a “priority” step for generating revenues, the Economic Survey 2014-15 said “a well-designed GST and other tax reforms would also play a crucial role in this regard.”
It also pitched for an improvement in the ease of doing business along with non-adversarial and non-intrusive tax regime through modernisation of the business processes of tax administration. This would increase revenue collections, which in-turn would help in achieving fiscal deficit targets.
Outlining the benefits attached to the GST roll-out, the survey added that “by subsuming a large number of central and state taxes into a single tax, it would mitigate cascading or double taxation in a major way and pave the way for a common national market.”
“From the consumer’s point of view, the biggest advantage would be in terms of a reduction in the overall tax burden on goods, which is currently estimated at 25-30%. Introduction of GST is also expected to make Indian products competitive in domestic and international markets.
Studies show that this would instantly spur economic growth.” it said.
GST, along with expansion of direct benefit transfers, “can be game-changers,” it added.