Why GST is needed | GST Need
Why Goods & Services Tax is needed after many years of having an indirect taxation system in India, for long. The new Goods & Services Tax indirect taxation offers various benefits but we need to consider the benefits and drawbacks as well.
The existing indirect tax laws are origin-based tax, structured to levy and collect at the point of happening of the prescribed taxable event. The indirect taxes are prone to abuse and also they do not focus on value being added to the product or service. Goods & Services Tax will remove this major weakness and will also track the flow of goods or services across India. Goods & Services Tax will also make it easier for good or services to be provided across India.
It therefore becomes imperative for the economy to shift towards introduction of Goods and Services Tax or GST which would
- reduce/mitigate the cascading effect
- bring about uniformity across the tax horizon
- ensure certainty and equity through efficient tax laws
- add to ease of doing business in India