How has the implementation of Goods and Services Tax (GST) impacted the Indian economy since its introduction
Discuss the effects of GST on various sectors of the economy and analyze its overall impact on India's fiscal structure.
- Streamlined tax system: GST has replaced multiple indirect taxes, creating a more simplified tax structure, reducing tax evasion, and promoting compliance.
- Boost to the formal economy: GST has helped formalize the informal sector, expanding the tax base and increasing government revenue.
- Impact on sectors: While some sectors saw initial disruption and increased compliance costs, overall, GST has led to efficiency gains through reduced logistics and inventory costs.
- Harmonization of prices: GST has led to uniform prices across states, promoting interstate trade and reducing price distortions.
- Overall fiscal impact: GST has contributed to increased government revenue, improved fiscal discipline, and enhanced transparency in tax administration.
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11 months ago