1.

Give the reasons responsible for introduction of GST in India.

Answer»

GST in India is introduced to:

  • Impose a single tax on a particular good/service by eliminating taxing it multiple times by states and centre, the way it used to happen before GST.
  • Eliminate the difference in tax rates between states for similar good/services.
  • Reduce the cost of collecting the tax as well as making its administration simpler.
  • Ease the digital procedures of tax collection.
  • Reduce tax evasion and avoidance and make the indirect tax structure more productive in terms of raising revenues.
  • Reduce the burden of indirect taxes on people.


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