2. Why is GST being introduced in India?
One of the main reasons for GST being introduced in India is the tax burden that falls both on companies and consumers. With the current tax system, there are multiple taxes added at each stage of the supply chain, without taking credit for taxes paid at previous stages. As a result, the end cost of the product does not clearly show the actual cost of the product and how much tax was applied. This cascading structure is too complex and inefficient.
GST will integrate most taxes into a single one, that will be applied to the sale and purchase of goods and services, with deductions for taxes paid at previous supply chain stages. This structure is predicted to be easier to track both for the government and business owners.