gst will bring foreign investors flocking to india, boost exports

The GST will eliminate the multiple taxes currently existing in India and simplify the country\'s indirect tax system.
Adoption of the Constitution (122ndamendment)
On Wednesday, Bill 2014 allowed a tax on goods and services (GST)
A unified pan
National tax structure.
GST will create a common domestic market, eliminate distortions caused by multiple taxation and tax rates, and increase efficiency by minimizing the tax chain effect in the production chain.
The GST will also have a beneficial impact on India\'s economic diplomacy, including foreign trade.
The goods and services tax is well aligned with the Modi government\'s efforts to improve convenience --of-
Do business in \"Made in India\" activities.
Multiple taxes have different tax rates in different states, which creates obstacles to the smooth development of the business and increases costs at each stage, frustrating foreign investors.
As a result of these distortions, foreign investment decisions and expected returns on projects are often affected and sometimes even hinder new investment plans.
In addition to Foxconn, most global value chains avoid investing in India because of regulatory and bureaucratic chaos, especially with more
Hierarchical tax system.
The successful implementation of GST will reverse this situation and help attract new investments, particularly those from global value chains, which typically pool inputs from different groups.
Another direct beneficiary will be India\'s exports, which have long lacked international competence due to different taxes and the energy spent on complying with the complex tax maze.
2010 reports from the National Commission for Applied Economic Research found that to 0. 9-1. 7%.
For example, garment manufacturers and exporters must rely on multiple input suppliers-finished cloth (
Processing and dyeing)
Lines, buttons, zippers, sewing machines, ironing products, packaging, labels for the production of finished products.
In turn, these suppliers purchase raw materials from multiple sources located in multiple locations, each paying multiple taxes in different tax jurisdictions.
At each stage, the goods are delayed in transit to assess and pay various taxes-sales tax, octroi, excise tax, service tax.
This increases efficiency and increases costs for each tier of exporters.
Also, since separate laws are in place in each state, this means that exporters cannot request a full setFree-on-
Export is not competitive.
The GST will ease the situation. The for 2015-
20 said: \"The simplification and coordination of the indirect tax system in India will reduce production costs and lead to a seamless and integrated Indian market, thus making India\'s trade and industry more competitive.
\"The benefits of service exports will become more visible in the coming weeks, but right away, travel, tourism and hospitality are a clear winner for their reliance on a variety of suppliers.
As the impact and impact of this simplified legislation began to emerge, the advantages of goods and services tax on foreign investment and foreign investment began to emerge.
Strong export growth will increase the accuracy of Prime Minister Modi
Economic diplomacy efforts.