India proposes to introduce a dual system of Goods and Services Tax (GST), with taxes imposed at both federal and state levels and a further distinction between GST on goods and GST on services. It is expected that the move to GST will create a simplified and integrated system of indirect taxation. The introduction of a dual GST will be, in effect, an integration and rationalisation of the existing regimes at both federal and state levels. It is however fundamentally different from the present regime in a variety of ways.
India’s policymakers have recognised that as an increasingly important international market and as the destination for considerable foreign investment, India needs a tax regime that is closely integrated with the rest of the world.
We at PwC are playing a key role in fostering awareness of the GST through our various communications.