GST A New Tax Reforms in India- Implementing Towards Sustainable Development of the Economy

Abstract

A developing economy like India necessities sufficient resources to finance the developmental activities that are comprehensively and achieves all levels of the society. Presently, the tax structure of Our country is very complex. To overcome these complexities of our taxation system, the government constantly changing the taxation system to rationalize tax administration and generate more revenues for social protection, infrastructure, and several other activities. That's the main reason, the government to implement or move towards the GST is an indicator of our evolved taxation system. After passing of the 101st Constitutional Amendment (GST) Act, the highly-anticipated tax products GST appears to be an actuality in 2017. To ensure a smooth transition, government and all related nodal agencies like Goods and Services Tax Council, GSTN etc., have been regularly making a decision to resolve the problems encountered being at different levels. To simplify the difficulties faced by indirect taxation system and create a common taxation system throughout the nation and decreasing the barriers between states, the dual structure Goods and Service Tax (GST) was passed by parliament. In 6th May 2015 at Lok Sabha and 12th May 2015 at Rajya Sabha passes constitutional amendment bill for GST and in 3rd August 2016 Rajya Sabha passes the constitutional GST bill by a two-thirds majority after more than a year. Now the government of India is committed to replacing the existing indirect taxation system levied on goods and service by both state and center and implemented by GST. It was formally launched by the President of India and Prime Minister of India at a formal function in the Central Hall of Parliament on 1st July 2017. GST will cover all the aspects of the existing indirect tax system like excise duties, customs duties, Local Body Tax (Entry Tax/Octroi), services tax, Sales tax/VAT etc. to reduce their tax burden and help the government in the uniformity, efficiency, and transparency of the taxation system in India and removal of cascading effect of taxation. This system has a uniform rate of tax for all the states. This paper is designed specifically to provide an in-depth knowledge of GST and what challenges the economy faces in implementing the GST at this time in a very practical and streamlined manner. The current study is an exploratory and descriptive research based on secondary data from different sources like GST Act, books, article, magazines etc.