Vol. 1, Issue 2 (2016)
Goods and Service Tax: It’s impact on Indian economy
Author(s): Sandeep Kumar
Abstract: This paper is an analysis of what the impact of Goods and Services Tax (GST) will be on Indian Tax Scenario. In this research paper, the researcher stated a brief description of the historical scenario of Indian taxation and its tax structure. Then the need arose for the change in tax structure from traditional to GST model. GST has a detailed discussion in this paper as the background, silent features and the impact of GST in the present tax scenario in India. The Goods and Services Tax is a value added tax to be implemented in India. GST is the only indirect tax that directly affects all sectors and sections of our economy. Ignorance of law is no excuse but is liable to panel provisions, hence, why not start learning GST and avoid the cost of ignorance. Therefore, we all need to learn it whether willingly or as compulsion. The GST aimed at creating a single, unified market that will benefit both corporate and the economy. The changed indirect tax system- GST is planned to execute in India. Several countries implemented this tax system followed by France, the first country introduced GST. The GST is a new story of Value Added Tax (VAT) which gives a widespread set off for input tax credit and subsuming many indirect taxes at state and national level. The GST Implementation and the drafting of GST law are still under process and a clear picture will be available only after 1st July, 2017. The GST Council fixed the tax rates on 1211 items, most of which will likely become cheaper as the new rates will be lower than the current effective levels. The GST is the One Hundred and First Amendment Bill of the Constitution of India, Officially known as the Constitution Act, 2016. India is a centralized and democratic country; therefore the GST will be implemented parallel by the central and state governments as Central Goods and Services Tax (CGST) and State Goods and Services tax (SGST) respectively. The objective will be to maintain a commonality between the basic structure and design of the CGST, SGST and SGST between the states. In this article, the researcher started with the general introduction of GST and tried to highlight the objectives of the proposed GST is trying to achieve. Thereafter, the researcher discussed the possible challenges and threats; and then, opportunities that GST brings before Indians to strengthen India’s free market economy.