IMPACT OF GOODS AND SERVICE TAX (GST) ON SERVICE INDUSTRY IN INDIAN ECONOMY

Commerce

The earlier system of indirect taxation had a multiplicity of taxes levied by the Central and States. This had led to complex and conflicting principles in the indirect tax structure, adding to the multiple compliances and administrative costs. There was no uniformity in tax rates and structure across India. There was cascading of taxes because of tax on tax. There were too many restrictions on seamless credit available in excise duty and service tax paid by customer. It has subsumed several indirect taxes each at the central and state level. GST is expected to boost Indian economy in long run and contain tax evasion. GST is a multi-tire tax where the tax burden falls on the consumer of goods/services. It is called as value added tax at every stage, tax is being paid on the part of the goods and services tax council to make recommendations on various matters of goods and services tax (GST). Therefore, the goods and services tax council play a pivot role under GST, which brings uniformity in the law.

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