Authors: Professor Nitin Agrawal, Chetan Singh Tomar
Abstract: Goods and Service tax is universally known as GST which is consumption tax currently used in on the supply of goods and service. It is comprehensive tax because it has subsumed almost all the indirect tax except a few state taxes. Before this tax model there are two types of tax in India which is levied by the government in different way. Old tax system of India is lengthy and complex, to file tax individual has suffered some paper work which is typical for common man. This paper compared current GST Framework and old taxation system and describes its impact on Indian economy in brief. However researcher observed also earlier studies. More than 160 countries have implemented GST so far. However, the idea of GST in India was mooted by Vajpayee government in 2000 and after having much discussion with different party it was passed on Aug 4, 2016 by the Rajyasabha. Finally India had implemented GSTfrom 1 July, 2017. Goods and Service Tax, a significant breakthrough and the next logical step towards a comprehensive Indirect tax reform in India. This paper gives an overview of GST and further discusses how the mechanism reduces the tax burden and other cascading effects. Brief description is given on the history of tax, GST background, introduction, salient features and illustration of reducing tax burden. GST is the new story of VAT to be implemented in India decision on which is pending. It aims at creating a single and unified market benefiting both corporate and economy because this is the only Indirect tax that directly effects all sectors of economy, it enables widespread setoff for Input Tax Credit(ITC) and subsuming of many indirect taxes having a dual concept model operating at centre(CGST) and state(SGST) to maintain commonality. Therefore this paper focuses on the overview and reducing tax burden through GST. With an aim of simplifying tax structure in India, GST proposes to remove the geographical obstacles for trading, and transforming the entire nation to ‘One Common Market Place.’ While it is believed that the ‘One Nation- One Tax’ regime is paving path towards a better economy of our country, questions related to how is this reform going to be any better than the earlier tax transformations India has seen over the past years (VAT-Service Tax-Excise), is a matter of concern. How is the new tax structure going to effect the consumer and the impact it will have on various sectors? We de-code this myth by listing down key differences between GST and the previous tax structure.
