A Study on Consumers’ Awareness on Goods and Services Tax

Abstract

The Goods and Services Tax (GST) -- India's biggest tax reform since independence formally launched in Parliament by Prime Minister Narendra Modi and President Pranab Mukherjee came into force after 17 tumultuous years of debate, unifying more than a dozen central and state levies. The new tax regime was ushered at the late night of 30th June and came into force on 1st July 2017. The one national GST unifies the country's USD 2 trillion economy and 1.3 billion people into a common market. As commented by Mr.Modi, GST is not just tax reform but its economic reform. GST is a way forward in the ease of doing business. In the language of law, it is called the goods and services tax, but the benefit of GST is really a Good and Simple Tax. Good because multiple taxes will be removed. Simple because it requires just one form and is easy to use. GST is a single tax on the supply of goods and services, right from the manufacturer to the consumer. Credits of input taxes paid at each stage will be available in the subsequent stage of value addition, which makes GST essentially a tax only on value addition at each stage. The final consumer will thus bear only the GST charged by the last dealer in the supply chain, with set-off benefits at all the previous stages. It renders numerous benefits to different parties such as business and industry, central and state governments and the ultimate consumers. An effort is made to understand the consumers’ awareness on Goods and Services Tax. Everything that is introduced will attract agitation and unrest among different group of people and they can easily be overcome by designing programmes to clarify the objections of renowned economists. GST will sure to have success when the confidence of every individual Indian citizens have obtained.