India is just hours away from introducing its biggest tax overhaul ever, the Goods and Services Tax (GST), at a special event in the national parliament.

The GST, which goes into effect at midnight Friday (1830 GMT) and will replace a slew of federal and state taxes is expected to transform the Indian economy into a single market and boost growth.

Prime Minister Narendra Modi is set to speak at the function in parliament, which will be attended by 1,000 guests including top leaders and industrialists.

The GST is expected to help goods move seamlessly across state borders, reduce transaction costs of businesses, curb rampant tax evasion and boost government revenues.

Opposition parties led by the Indian National Congress have decided to boycott the GST function, saying the country was ‘ill-prepared’ for the new tax, which would hurt ordinary citizens, small businesses and traders.

Small businesses have also voiced their concerns over the new tax rules, compliance burden and the complex multi-tier structure. There are concerns over the functionality of the GST network, the mammoth portal for tax-payers.

Thousands of textile mills and retailers across the country were on strike this week to protest the tax. An estimated 1,100 cinemas in south India will also go on indefinite strike from Monday due to lack of clarity on the tax amount that will be levied after GST implementation.

Finance Minister Arun Jaitley rejected talk of disruptions to business saying companies will be allowed to file late returns for the first two months, which will make the switch to the GST regime smooth. 

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