Multiple actors have highlighted that the GST will facilitate and significantly increase the trade of goods and services within India. For instance, trade bodies in Bihar recently welcomed the ratification of the GST highlighting that it likely to increase country wide trade and State tax revenues. Trade is expected to increase as the GST will eliminate the current multitude of taxes, duties and surcharges that exist between States thereby effectively creating a common Indian market. This will allow goods and services to move across State borders without the current checks or duties. For instance, successful GST implementation is expected to eliminate the queues of trucks waiting at state boundaries. Indian businesses are generally supportive of the GST as it is expected to simplify their value chains.
How can farmers and agribusiness prepare for the new tax regime?