Opportunity and Challenges with GST

Abstract

One of the main objectives of GST is to eliminate the cascading effects of taxes on the costs of production
and distribution of goods and services. Excluding the waterfall effect, taxes on taxes will greatly increase
the competitiveness of original goods and services that have a beneficial effect on GDP growth. GST will
be a good reason to achieve the goal of simplifying India's indirect tax regime to eliminate cascading
effects in the supply chain to the level of the final consumer only when all these indirect taxes are fully
included in the GST. Because alcohol, tobacco, and petroleum products are considered sinless
merchandise for alcohol and tobacco, the government will not include them in the GST, and the
government is reluctant to allow free trade in these properties.

Keywords: GST, double GST, tax benefits, VAT, GPP growth rate.