IMPACT OF GOODS & SERVICES TAX (GST) ON ECONOMIC DEVELOPMENT

Abstract

GST is one of the most crucial tax reforms in India which has been long pending. It was supposed to be implemented from 1 April, 2017. GST is one of the biggest taxation reforms in India the GST is all set to integrate state economic and boost overall growth currently, companies and businesses pay lot of indirect taxes such as VAT, service tax, sales tax, entertainment tax, octopi and luxury tax. Once GST is implemented, all these taxes would case to exit. There would be only one tax, that too at the national level, monitored by the central government. At present, separate tax rates are applied to goods and services. Under GST there would be only one tax rate for both goods and services. The goods and services tax will be indeed be a further significant improvement towards a comprehensive indirect tax reforms in the country. Integration of goods and services taxation would give India a world class tax system and improve tax collections. 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. This paper presents impact of GST on Indian Economy. The paper is more focused on advantages of GST and Challenges faced by Indian Context.