GST AND ITS IMPACT ON INDIAN ECONOMY
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Abstract
Goods and service tax (GST), the biggest tax reform in India is constituted on the notion of “One Nation- One Taxâ€. It is a path breaking indirect tax reform which has created a common national market by dismantling inter-state trade barriers. Beyond shadow of doubt, Goods and Services Tax (GST) has become a reality from 1st July, 2017.
The main rationale behind GST is to eliminate cascading effect (tax on tax) and to replace existing taxes like value-added tax (VAT), excise duty, service tax and sales tax with single comprehensive tax, bringing it all under single umbrella. It will subsume all indirect taxes of Central and State Governments and unified economy into a seamless National Market. It is expected to reduce cost of production and inflation in the economy, thereby making the Indian trade and industry more competitive, domestically as well as internationally.
The paper presents an overview of GST concept, explains its features and also shows the positive and negative impact of GST on Indian Economy.