Goods and Services Tax aims to remove cascading taxation and create a unified market, improving competitiveness and revenue stability.
Introduction of a Goods and Services Tax (GST) is proposed to eliminate cascading taxes, improve competitiveness, secure a stable consumption based revenue stream for States, and reduce revenue leakage. Preparatory measures include a Constitutional amendment proposal, blueprint work by an Empowered Committee, and establishment of a not for profit Special Purpose Vehicle to operate the GSTN with Centre, State and private representation while retaining government strategic control.

Goods and Services Tax proposed to remove tax cascading and create a unified, transparent national market for goods and services.
Introduction of GST aims to remove tax cascading, enhance competitiveness, increase transparency, check revenue leakage, and provide States with tax revenues aligned to consumption. Preparatory reforms cited include the switch to State VAT, integration of central excise and service taxation, and a Constitution Amendment Bill. Institutional measures include creating a non government Special Purpose Vehicle to operate the GSTN with mixed governance while government retains strategic control. Parliamentary concerns noted include inflation risk, uniform rates, higher registration thresholds, dispute resolution simplification, and decision making procedures for the GST council.