New Delhi: The implementation of goods and services tax (GST) could boost the country’s gross domestic product (GDP) by about 2% annually, industry body Assocham on Wednesday said.
“GST could increase GDP growth rate by 1.4 to 1.7% with an annual revenue increase of Rs 1.2 lakh crore at current level,” it said.
At present, the GDP, which is the sum of total goods and services produced in a year, is over $1 trillion (Rs 58.68 lakh crore).
Introduction of GST, which will subsume central and state taxes like excise, customs, service tax, sales tax and VAT, has been pending for years in the absence of political consensus. GST Constitution Amendment Bill is pending before Parliament.
The main concern of the Opposition-ruled states is that the new tax regime would erode their autonomy to levy taxes.
Assocham said the GST will create a single Indian common market with supply chain efficiencies and scale up the economy.