Goods and service tax (gst) in indian economy- an overview

Abstract

The Indian economic system is well structured and insulated to withstand the upsand downs in the economic cycle. This helped the Indian economy to survive during therecent economic crisis around the world. Even the globally accepted economic giants werealso affected adversely during the crisis. The recently implemented Goods and Service Tax-GST system is expected to be another milestone in the Indian economy. The border ideabehind GST is ‗One nation One tax system‘. The fundamental intention behind GST is toavoid compound taxation system and to administer uniformity in the scattered tax system ofthe country. The implementation of GST will reduce the tax burden of manufacturers indifferent sectors which in turn will enhance the units of production. This process willimprove the total exports and the benefits of the same will be reflected in total GNP. Theavoidance of cascading effect in taxation will reduce the tax burden in different players insupply chain and a portion of the benefit is expected to be enjoyed by the end customer. Thispaper intends to reveal the impacts of GST in different sectors of Indian economy