Ministry of Statistics & Programme Implementation on Wednesday released India's Gross Domestic Product (GDP) numbers for the quarter January-March 12017. It said that India's GDP for the fourth quarter stood at 6.1%. And, for the full financial year, GDP stood at 7.1%. 

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The numbers came as a surprise simply because in the previous quarter despite the announcement of demonetisation, GDP rose to 7.1%.

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However, with economists and analysts blaming demonetisation move for nearly 1% drop in India's growth, there is still hope.

That hope is Goods and Service Tax (GST). But, will it help in reviving the country's growth?

GST is set to be rolled out from July 1, 2017 and the GST Council, in its meet in Srinagar on May 18, 2017, decided on tax rates for 1,211 items.

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Giving reason behind the positive impact of GST on GDP, Federal Reserve said under the  existing structure, at each point of sale, additional taxes are applied to the after-tax value of each goods and services. 

The main purpose for GST is to eliminate this compounding effect by fixing the final tax rate, where goods will fall into one of the four rate categories of 5, 12, 18, and 28%.

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The International Monetary Fund, last week said that the GST will replace the myriad local levies with a single tax, would enhance production and the movement of goods and services across Indian states. This would contribute to putting the economy into a faster growth trajectory.

Hence, for the coming quarters it will be interesting to see whether GST helps in uplifting India's growth.