GST
The finance minister has stated that delaying the Goods and Services Tax, or GST, is not an option any more and will be cleared by the end of the year.
The GST will be a key milestone in the economic reforms process. It is expected to simplify and streamline the indirect tax regime, improve tax administration and the resource raising potential of state governments.
The Economic Survey suggested a complete overhaul by bringing in the GST and DTC – the latter is the Direct Tax Code that affects direct taxes, as against the GST which targets indirect taxes.
The Survey also recommended weeding out “bad taxes” – surcharge, cess, dividend distribution, transaction taxes - to boost investments as well as GDP growth.
India’s complex tax system suffers from problems in both structures and administration. The key objective must be simplification with a clean conceptual core.
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