A Detailed Analysis of GST(Goods and Services Tax)

Abstract

GST(Goods and Service Tax ) is all set to be a game changer for the Indian economy. The Goods and Services Tax (GST), implemented on July 1, 2017, is regarded as a major taxation reform till date implemented in India since independence in 1947. GST is intended to include all these taxes into one tax with seamless ITC and charged on both goods and services. Thus excise duty, special additional duty, service tax, VAT to name a few will get repealed and will be added into GST.Consumption and productions of goods and services is undoubtedly increasing and because of multiplicity of taxes in current tax regime administration complexities and compliance cost is also accelerating. The GST based taxation system brings more transparency in taxation system and increases GDP rate from 1% to 2% and reduces tax theft and corruption in country. This paper highlighted the GST concept along with significant workingand also presented in-depth coverage regarding advantages to various sectors of the Indian economy after levying GST and outlined some challenges of GST.