An Overview of Goods and Services Tax (Gst) In India

Abstract

The GST is a Value added Tax (VAT) is proposed to be a comprehensive indirect tax levy on manufacture, sale and consumption of goods as well as services at the national level. It will replace all indirect taxes levied on goods and services by the Indian Central and State governments. It is aimed at being comprehensive for most goods and services. The GST council, comprising federal and state finance ministers, has already cleared all the five draft lawsthe central GST, Integrated GST, state GST, union territory GST and rules on compensating states for revenue losses. GST is expected to create a business friendly environment, as price levels and hence inflation rates would come down overtime as a uniform tax rate is applied. It will also improve government's fiscal health as the tax collection system would become more transparent, making tax evasion difficult. In this paper impact of GST (Goods and Services Tax) on Indian Tax Scenario will be analyzed. Here firstly historical scenario of Indian taxation and its tax structure will be described and then the need for the change in tax structure from traditional to GST model will be discussed. An attempt will also be made to study the concept of goods and service tax, its impact on Indian economy as well as the advantages and challenges of GST in Indian scenario in this paper.