A Comprehensive Analysis of Goods and Service Tax (GST) In India

Abstract

This paper provides a comprehensive examination of the Goods and Services Tax (GST) introduction and history in India, with a particular focus on the impact of the GST on the federal financial system. It examines the primary components of GST and evaluates its intricate consequences, particularly in relation to revenue collection, productivity increase, and cost reductions in India. The historical context of the GST tax reform in India is used to understand its evolution. The study considers the structural changes that the Goods and Services Tax (GST) has caused and its implications for the federal financial system, as well as the redistribution of fiscal powers between the federal and state governments. The report also underscores the Goods and Services Tax (GST)'s key attributes, including its input tax credit method, unified tax regime, and compliance requirements. It assesses the impact of the GST on various groups of individuals, including consumers, businesses, and governmental organizations. The study specifically examines the productivity increases and cost reductions that result from the implementation of GST, emphasizing its role in simplifying business operations and reducing tax-related inefficiencies. It also examines the impact of the GST on India's revenue collections, considering factors such as administrative efficiency, tax rates, and compliance levels. In conclusion, this study contributes to the existing body of knowledge on GST by examining its historical context, structural attributes, and potential implications for India's federal financial system. It will be a valuable resource for policymakers, scholars, and practitioners who are interested in understanding the complexities of the GST implementation and its broader economic implications.