Goods and service tax (gst) in indian economy- an overview

Abstract

The Indian economic system is well structured and insulated to withstand the ups and downs in the economic cycle. This helped the Indian economy to survive during the recent economic crisis around the world. Even the globally accepted economic giants were also affected adversely during the crisis. The recently implemented Goods and Service Tax-GST system is expected to be another milestone in the Indian economy. The border idea behind GST is ‗One nation One tax system‘. The fundamental intention behind GST is to avoid compound taxation system and to administer uniformity in the scattered tax system of the country. The implementation of GST will reduce the tax burden of manufacturers in different sectors which in turn will enhance the units of production. This process will improve the total exports and the benefits of the same will be reflected in total GNP. The avoidance of cascading effect in taxation will reduce the tax burden in different players in supply chain and a portion of the benefit is expected to be enjoyed by the end customer. This paper intends to reveal the impacts of GST in different sectors of Indian economy