Goods and services tax - a boon for india

Abstract

Goods and Services Tax (GST) is an indirect tax which was introduced inIndia on 1 July 2017 and was applicable throughout India which replaced multiple cascadingtaxes levied by the central and state governments. The Goods and Services Tax was launchedat midnight on 30 June 2017 by the Prime Minister of India, Narendra Modi. The launch wasmarked by a historic midnight (30 June – 1 July) session of both the houses of parliamentconvened at the Central Hall of the Parliament. The session was attended by high-profileguests from the business and the entertainment industry including Ratan Tata. The Goods andService Taxation (GST) policy of India is a step to normalize the taxes applied on variousgoods and services. This would curb off the cascading effect of the taxes, and in turn bringout a better place for the customers and suppliers. It is expected to have a tax only on thevalue addition and no business costs for the procurement of inputs, raw material or inputservices. It is a boon in the long run… there may be some problems like unequal price riseand fall of different commodities, short term loss to the local bodies etc but in a long run it'sgoing to make our economy more robust transparent and efficient. In this paper we made anattempt to bring out the windfall of the new indirect tax just introduced in India.