As one of the biggest tax reform in India in the modern time GST is aimed at integrating all the states to make India as a single market. As on today there are 140 countries in the world where GST is already applied. France implemented GST in 1954. India is about to follow a two stage GST like Canada and Brazil. Central GST and State GST.
Benefit:
This taxation system is based on the the collection from a consumption point instead of a origin point system. As a result the states that are net consumer will stand benefited from the system. State of West Bengal and Kerala will get benefit from the system and states like Tamil Nadu and Gujrat will loose. This system will give the consuming states more tax to improve system and increase consumption. It is estimated yearly India will benefit by about $ 15 billion from implementation of GST.
Implementation problem:
There are a few obstacle in the way of GST, first getting it passed in the Indian Parliament (mainly in Rajya Sabha) where NDA does not have the number and not likely to have the number till 2018. Second some states confirmed to the Center that their infrastructure and information systems are not yet ready to implement the GST.