Goods and Services Tax- Why Do We Need It?

Goods and Service Tax in India is believed to the indirect unified tax that is simultaneously applied across the country. Goods and Services Tax eliminates all the other indirect tax that were increasing the price of goods and services and were creating a complicated system of tax in all over the country. Earlier the indirect tax system in India was controlled on the State and Central level and created different market places in the same country. However, GST helped in improving the process of revenue generation and benefiting many industrial sectors. Therefore, this paper will focus on analyzing the significance of Goods and Services Tax (GST) and why we need Goods and Services Tax and what are the benefits of this tax in India. The paper will also focus that what were the needs that arose the change in the traditional tax to GST model.