Goods & Services Tax (GST): An Analysis of impact on Indian Economy- Advantages & Challenges

COMMERCE

Taxes play a key role in the development of any economy. Therefore it is highly important that taxation system is designed in an appropriate manner. Laws relating to taxation whether Direct tax or Indirect tax should be stringent enough so as to minimise tax evasion incidents & increases the revenue for the government. The Good and services Tax (GST) is one of the major reforms done in the taxation system since independence. GST is an multi stage destination based tax that is levied on every step of sale from the producer/manufacturer till the end consumer of goods/services on the value addition. GST was proposed to be implemented in 2010 by the then ruling party INC but due to various reasons it didn’t passed by the legislature. Various indirect taxes were prevailing in India before implementation of GST like VAT, Service Tax, Central excise duty, Entertainment Tax, and Octroi & Luxury Tax. An Attempt is made in this paper to highlight the background, objectives, challenges faced & its impact on various parties in the market such as customers, businesses & Government in Indian Economy.

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