Goods and Services tax (GST) Bill has been passed by both houses of India. Historical performance : In 1986, implementing GST yielded 46% more revenues than expected in New Zealand due to improved compliance. Similarly, according to estimates, the GST—pegged at 60%—in Canada resulted in an increase of 24% in GDP, driven by 12.4% increase in national income (due to increased productivity) and 50% increase in larger capital stock (due to tax cascading elimination). Introduction: GST—or the goods and services tax—is a next stage evolution of multi-level taxation system.
It is targeted to be a comprehensive indirect tax on goods and services across their production, distribution and consumption. The system would lead to a unified value added system, implementing value added tax at all levels of supply and/or value chain. The companies under this taxation system will be able to claim…
