Abstract
In Developing countries like India, the taxation system is very crucial role in the development of revenues of the country. But India tax system is difficult to understand and in fact for calculation too in case of both direct tax as well as indirect tax. In order to overcome the problems of the government of India tries to simply the direct tax as well as indirect tax, the government made the proposal of introducing GST (goods and services tax) instead of all indirect taxes and DTC (direct tax code) instead of direct tax. But fortunately GST won the first place in the purview of implementation. The government of India is committed to replace all the indirect taxes levied on the services and goods by state and central government in the month of April 2017. This paper made an attempt to explain the level of impact of this GST (goods and services tax) on the growth of the economy, and benefits for the business and government and for the consumers.
Highlights
As per Article of 366 of the 122nd Constitutional Amendment Bill, 2014 [Constitution (101st Amendment) Act, 2016] “Goods and Services Tax means any tax on supply of goods, or services or both except taxes on the supply of the alcoholic liquor for human consumption”
The dual model was propounded in the First Discussion which was released by the Empowered Committee with an objective to go away from the problem of tax on tax that is called double taxation and to move to a common tax base and to have various Central and State levies on goods and services into Central Goods and Services Tax (CGST) and State Goods and Services Tax (SGST) [8] [11]
All local and all intra-State supplies of taxable goods and services will be liable to both CGST & SGST except when the same get excluded on account of turnover threshold limits or other exemptions
Summary
As per Article of 366 of the 122nd Constitutional Amendment Bill, 2014 [Constitution (101st Amendment) Act, 2016] “Goods and Services Tax means any tax on supply of goods, or services or both except taxes on the supply of the alcoholic liquor for human consumption”. Goods and Services Tax (GST) is popularly known as VAT [10]. In 1954, France adopted GST as its indirect taxation structure and became the first country to adopt the GST. Within 62 years of its start, about 164 countries across the world have adopted GST because this taxation system has the capacity to raise revenue in the most transparent and unbiased manner. Most of the countries follow unified GST i.e., a single tax applicable throughout the country. In national politics like Brazil and Canada, a dual GST system is prevalent. GST is levied by both the national and the state governments. Intends to adopt a dual GST [7] [8] [4] [10]
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