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.
{{/usCountry}}Studies show that this would instantly spur economic growth.” it said.
{{/usCountry}}GST, along with expansion of direct benefit transfers, “can be game-changers,” it added.