Goods and service tax: impact on indian economy

Goods and service is extremely comprehensive tax structure when implemented at the national level. It is one of the significant phases towards the development of the country. It is one of the biggest tax revolutions which is all set to integrate the state and national economy to boost the wholesome growth of the country. Presently companies and businesses pay multiple taxes which enhance the cost of product and also hamper the profit level of the company. Multiple tax and complex taxation system is one of the biggest barriers for economic growth of the country. Once the GST system is applied there would be single tax system which would record a major development in comprehensive indirect taxation reform. Under the GST system there would be only on rate relevant for both goods and services. GST will create a business friendly environment, as prices will fall and it would also influence the inflation rates.