Terming the Goods and Services Tax (GST) as a precursor, Reserve Bank of India (RBI) Governor Urjit Patel has said that the news tax regime will expand the taxation base which in turn will lower the overall tax burden in the long-term. Apart from this, he also said that it will reduce many inefficiencies within the states while moving goods from within a state and also across the country.
Patel further said that GST network itself is part of the digitisation revolution, which along with the reforms on the information tax side in terms of the processes and operations, have the potential to broaden the tax base considerably. He asserted that the broadening of tax base is an important outcome of the new uniform taxation regime and other initiatives on e-payments and digitisation.
With a four-rate structure, the much-speculated tax reform in Indian history, the GST is all set for a big launch on the midnight of June 30. All states and Union Territories, barring Jammu and Kashmir, have passed enabling laws for its implementation.