The GST policy of India aims to develop one single and overall indirect tax that replaces many indirect taxes that were formerly imposed by the central as well as state departments. This includes comprehensive tax systems which have replaced taxes like VAT, excise duty, service tax etc., thus making it easier both for the firms and government in their respective workability of managing taxation systems.

This eliminates tax-on-tax, and therefore it’s less painful for the consumer. It helps promote a common national market as states are set a uniform structure of taxes and a company can extend all operations to any part of the country. Furthermore, through GST, it brings in increased transparency of the tax regime and curtails tax arbitrariness. All these simplified and efficient tax structure in the long run promotes economic growth, enhances the Doing Business rating, as well as expanding the tax base to get optimum tax compliance.