GST is seen boosting India's GDP growth by 1.5-2 per cent over the long term
From July 1, the country will move to a new indirect tax regime as GST or goods and services tax will subsume nearly a dozen of central and state taxes. From the consumer's point of view, the biggest advantage would be in terms of reduction in overall tax burden on goods. For businesses, it means reduction in a multiplicity of taxes and a much simpler tax regime with fewer rates and exemptions. GST is being hailed as a potential "game-changer" for Indian economy. "GST will definitely change the way in which business operates. To that extent it is a major positive disruption, leading to more transparency and will make doing business easier," said Madan Sabnavis, chief economist with CARE Ratings, adding that in the short-term there could be some implantation challenges. Goods and services, depending on their nature, have been placed under four tax rates of 5 per cent, 12 per cent, 18 per cent and 28 per cent while some are exempt.