At stroke of midnight, India gets a ‘good and simple tax’ |ForumIAS

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At stroke of midnight, India gets a ‘good and simple tax’

Context:

India’s biggest tax reform since Independence, rolled out on 1st July, 2017.
The new good and simple GST (Good and Service Tax) ushers in a ray of hope for the economic pillars of the country.

Significance:

To serve the purpose of national integration, GST today will help integrate India’s economy.
The introduction of GST is not only a tax or economic reform but also a social reform that will nudge people on the path to honesty and benefit the poor the most.
The practice of giving out informal bills would come to an end as the GST presented an opportunity to stop black money and corruption.
The new GST will open up chance for the common mass to do honest business.
The initiative would end the spectre of tax terrorism and Inspector Raj that India’s businesses have had to endure for long.

Conclusion:

Initially, even though a number of shortcomings may emerge but it is similar to the introduction of the VAT (value-added tax) regime which met resistance initially.
The GST Council, Centre and States should continuously improve and refine the GST in the same spirit that the country has seen till now.