Goods and Services Tax (GST) in India:An Overview and Impact

Abstract

Indirect taxation in India needs a definite revamp as we have multiple taxes like service tax, excise duty, sales tax and so on, for a single good or service. The taxation system has become very complex and leading to various issues like double taxation and cascading effects etc., which are ultimately affecting the general public, with increasing prices and lack of transparency. The present system is not only affecting the general public, but also the investors, industries, businessmen and taxpayers as well, which is hampering the easy of doing business and growth of economy at large. Indirect taxes are related to growth of GDP; so, it plays an important role.

Goods and Services Tax (GST) is considered to be the best solution for all these issues and which is expected to bring in tax efficiency, simplicity, transparency and degree of harmonization to the tax base, tax rates and tax infrastructure. More than 160 countries around the world have already implemented GST and implementation of GST in India would bring in similarity. Now, implementation of GST has become certain in India and it is a right time to understand it. So this paper tries to throw a light on various aspects of GST and to know its probable impact on Indian economy and its sectors. The data are collected through various secondary sources like reports of government, professional bodies, working committees and also from research papers, articles, news, budget sessions etc.