The biggest game changer in GST is input tax credit
With GST rolling out from July 1, the new tax regime subsumed a large number of central and state taxes into a single tax, paving the way for a common national market. From free flow of goods and services to elimination of cascading of taxes, the potential benefits to Indian economy are many. It is estimated that GST could raise GDP or gross domestic product growth by 1.5-2 per cent in the long term. Commenting on the benefits of GST, Finance Minister Arun Jaitley said the new tax regime has multiple benefits - it will create a national market, enhance ease of doing business and improve tax compliance. For consumers, Mr Jaitley said, it will lower the overall tax burden on consumers.