Post Implementation Issues of Goods and Services Tax in India

Abstract

GST was declared as India's second intended attempt. But several months ago, on 1 July 2017, India as a country had made a big leap towards a new order in its tax history which is undoubtedly, one of the important and revolutionary indirect fiscal reforms in Indian history since independence. In addition, the post-GST era has so far seen the exporter numerous blows, errors and incompatibility in archived returns as well as the World Bank calling GST a very complicated tax system. The GST Act prior to its implementation faced the resistance of state governments due to fear of loss of income for state governments. The current GST has certain problems in the system. In addition, there are only two countries apart from India, namely, Canada and Brazil to have applied the dual GST model. In most other countries of the world there is only one single tax system that is VAT or GST. The following study focuses on getting a meaningful idea about The challenges and prospects of post GST application in India and the difference between Indian model of GST and similar taxes in other countries is double GST Model. This study seeks to clarify the problems of subsequent application of goods and services tax in India that how experience in GST raises a larger point, and maybe it highlights a future lesson, about policy reforms. After two years in the time of the pandemic significantly after the closure it has become difficult to manage for businessmen. Meanwhile, the government has been proactive in resolving the problems faced by Indian taxpayers. There are still gaps between the expectation and actual application of GST in terms of a simplified tax structure, ease of doing business, and overall price reduction. This study discusses the main problems of how goods and services tax affects the Indian economy and after the results are applied a thorough understanding of GST in some other countries of the world. In addition, these issues have been raised during the post-implementation period, as well as critically analysing the expectation and the difference between their reality.