Abstract
This paper is an analysis of the impact of GST (Goods and Services Tax) on Indian Tax Scenario. The Good and services tax (GST) is the biggest and substantial indirect tax reform since the year 1947. The main idea of GST is to take over existing taxes like value-added tax, excise duty, service tax and sales tax. GST will be levied on manufacturing of sales and consumption of goods and services and is expected to address the tumble effect of the existing tax structure and result in uniting the country economically. Its main objective is to maintain a plebeian between the basic structure and design of the CGST, SGST and SGST between states. GST is a new story of VAT which gives a widespread setoff for input tax credit and contains many indirect taxes from state and national level. The main aim of GST is to create a single, unified market which will benefit in the development of country’s economy. India is a democratic country and therefore the GST will be implemented parallel by the central and state governments respectively. In this article, I have discussed GST and highlighted on the objectives of it. Consequently, I also put a light on the possible challenges, threats, and opportunities that GST brings to strengthen the free market economy. Finally, the paper examines and draws out a conclusion.
Highlights
The word tax is derived from the Latin word ‘taxare’ meaning to estimate
If Value Added Tax (VAT) is a major improvement over the pre-existing Central excise duty at the national level and the sales tax system at the State level, the Goods and Services Tax (GST) will undoubtedly be an additional important perfection, the logical step towards a widespread indirect tax reforms in the country
The taxes are levied at the multiple stages such as CENVAT, Central sales tax, State Sales Tax, Octroi, etc. will be replaced by Goods and Service Tax (GST) which is introduced at Central and State level
Summary
The word tax is derived from the Latin word ‘taxare’ meaning to estimate. A tax is not a voluntary payment or donation, but an enforced contribution, exacted pursuant to legislative authority" and is any contribution imposed by government whether under the name of toll, tribute, impost, duty, custom, excise, subsidy, aid, Supply or other name.”. VAT at the Central and the State level has been considered as a major step, towards indirect tax reforms in India. If VAT is a major improvement over the pre-existing Central excise duty at the national level and the sales tax system at the State level, the Goods and Services Tax (GST) will undoubtedly be an additional important perfection, the logical step towards a widespread indirect tax reforms in the country. There are 160 countries in the world that have implemented GST or VAT Under this scheme, no distinction is made between goods and services for levying of taxes. It would definitely a positive reform for the Indirect tax system in India. The taxes are levied at the multiple stages such as CENVAT, Central sales tax, State Sales Tax, Octroi, etc. will be replaced by GST which is introduced at Central and State level
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