Impact of GST on the formal sector

The Goods and Services Tax (GST) has been hailed as the biggest tax reform in India after independence. One of the principal advantages of the GST is that it is a tax on the value added. So, a firm producing a particular good or service has to pay tax only on the value it adds to the product, while deducting the tax payments made on its inputs (which have already been paid by the input supplier).…