Indian PM Narendra Modi on Friday announced that his government will reveal the new Goods and Services Tax (GST) reform during the Diwali festival in October.
“This Diwali, I am going to make it a double Diwali for you,” Modi said in his 103-minute-long Independence Day speech delivered from the historic Red Fort.
“We are bringing next-generation GST reforms,” he said.
What is GST?
GST is one indirect tax for the whole nation, which will make India a unified common market.
GST is a single tax on the supply of goods and services, right from the manufacturer to the consumer.
Credits of input taxes paid at each stage will be available at the subsequent stage of value addition, which makes GST essentially a tax only on value addition at each stage, read a government statement.
The final consumer will thus bear only the GST charged by the last dealer in the supply chain, with set-off benefits at all the previous stages.
