For most industrial products, GST rates have been slated at 18%. One, GST replaces eight central and nine state taxes such as central excise duty, service tax, state VAT and entry tax. Also, GST is to be paid only on the value addition and not on absolute value. This would require India to expand its manufacturing value add to $837.7 billion and manufacturing gross output to $3.8 trillion by 2025. Combining GST with a clearly articulated manufacturing strategy would attract global investments, create jobs and make India a large manufacturing nation within a few years.

Source: Times of India May 24, 2017 20:47 UTC