Implementation of GST is an attempt by the Govt. Of India to unify the various states tax in common market by replacing the complex regime of national, state and local tax. GST will lower the tax burden on consumers and at the same time it will reduce the capital requirements of the business drastically due to relief in taxes.

Efficient Tax distribution structures can be achieved with the abolition of Central Sales Tax and uniform tax regime all over India. But there are some loopholes in implementation of GST like too many exemption or reduced tax rates for too many products can have adverse effect. At the same time efficient, fast and robust refund mechanism is needed for the products that are exempted or taxed at lower