 Why India need GST…?

The most noteworthy and comprehensive tax reform in India's post-

independence history is the GST. If the question "What is the need of
GST in points in India?" is posed, its goal and ambition were to
impose a single, uniform national tax on all products and services
across the country. GST is necessary since it has replaced a number
of taxes, including sales tax, service tax, and others, and as a result,
India is now a more integrated national market with more individuals
paying taxes. Enhancing productivity may significantly boost
revenues and contribute to the development of the nation. Perhaps
for a vast and complex system, introducing a new tax regime that
includes both products and services by the State and the center is
unprecedented the world's contemporary tax history.
Prior to the implementation of the GST, India's indirect tax system
had a number of shortcomings and restrictions. The pre-GST system
of national excise duty and the state sales tax system had a tax-on-
tax burden that necessitated the implementation of the GST. A
plethora of center- and state-level indirect taxes have to be absorbed
by the GST. To provide assistance, it has incorporated taxes on both
goods and services. Additionally, the distributive trade has been able
to capture value increases under this system. A tax base that has yet
not been fully utilized in India is the service industry, which has great
potential. The need for GST in India is justified because it has
practically all services covered for taxation.
The complexity of taxes has significantly decreased as a result of the
GST's inclusion of the majority of state and federal indirect taxes,
which also lowers the cost of running the country's tax system. The
cost of compliance will be significantly decreased by the country-
wide consistency of practices and tax rates. In its simplest form, GST
is a comprehensive indirect tax imposed at the national level on the
production, consumption, and sale of goods and services.
In order to create a single, common market for the entire country,
GST is an indirect tax. It is intended to offer India a top-notch tax
system and enhance the administration and collection. It will put a
stop to the long-overdue distortions of treating the industrial sector
and services sector differently. Additionally, it will enable seamless
credit throughout the whole supply chain and across all states with a
single tax base.
As we've explained, the previous indirect tax system had a lot of
shortcomings and restrictions. By providing its benefits, GST was able
to override, mitigate, and completely eliminate the bulk of the
drawbacks. In the following, we outlined the justifications for India's
necessity for GST.

 Continuous Flow of Credit

Since GST is a destination tax, the consuming states get the income
from SGST. The interstate supplier in the exporting State may offset
the IGST due on an interstate supply made by him using existing
credits for CGST, SGST/UTGST, and IGST. The credit for the IGST paid
on his interstate purchases may be claimed by the importing state
buyer. Thus, under the GST regime, there is a smooth credit flow in
the event of interstate supply, in contrast to the former scenario
where the credit chain used to break in case of interstate sales due
to non-VAT able CST. The credit of IGST utilized to pay UTGST/SGST is
transferred by the center to the importing State. The exporting State
does not get any of the money from interstate transactions, but
instead sends to the center the UTGST/SGST credit that was used to
pay the IGST. Therefore, the IGST required a reliable method for
resolving disputes between the center and the State. A centralized
organization is required that can serve as a clearinghouse, validate
claims, and alert other governments to the movement of cash. Only
with the assistance of a solid IT infrastructure is this feasible.

 Increases in exports

Assume that prices are competitive in the Indian market. of that

scenario, more and more international competitors would strive to
participate, leading to an increase of exporters and eventually
benefiting the country participate, leading to an increase of
exporters and eventually benefiting the country.

 Affordable Prices:

All other indirect taxes are replaced by the GST, which reduces the
overall amount of taxes that end users must pay. As we study
economics, the more demand there is for a product, the more
consumption there will be, which will be advantageous to the
companies.

 Growth in Income:

Increasing the country's indirect tax collection was another factor in

the necessity for the GST. GST is simple to grasp, and a
straightforward tax system will attract more taxpayers, increasing tax
income for the Indian government.

 Simple and Uncomplicated Tax Structure:

Prior to the introduction of GST, taxpayers had to pay several taxes,

but since GST is a single tax system, there is only one tax that must
be paid, making it more simpler and more comfortable to grasp. Less
paperwork will be generated for accounting as business complexity
decreases, saving time and money.