GST IN INDIA: A Milestone in Indirect Tax reform

Abstract

This paper is an analysis of what the impact of GST (Goods and Services Tax) will be on Indian Tax Scenario. Here stated with a brief description of the historical scenario of Indian taxation and its tax structure. Then the need arose for the change in tax structure from traditional to GST model. GST has to be detailed discuss in this paper as the background, silent features and the impact of GST in the present tax scenario in India. GST is the only indirect tax that directly affects all sectors and sections ofour economy. Ignorance of law is no excuse but is liable to panel provisions, hence why not start learningGST and avoid the cost of ignorance. Therefore, we all need to learn it whether willingly or ascompulsion. The goods and services tax (GST) is aimed at creating a single, unified market that willbenefit both corporate and the economy. To make "One Nation, One Tax" a reality, the government is training its officers on taxation of services. GSTN, the technology backbone for the reform, has a massive IT mandate of securely handling mammoth volumes of data that GST will generate. The legislation cuts across all enterprises, requiring them to relook at their business models, business policies, and procedures. Several countries implemented this tax system followed by France, the firstcountry introduced GST. Goods and service tax is a new story of VAT which gives a widespread setoff for input tax credit and subsuming many indirect taxes from state and national level. The GST introduced in India on 1 July 2017 and applicable throughout India which replaced multiple cascading taxes levied by the central and state governments. It was introduced as The Constitution (One Hundred and First Amendment) Act 2017, following the passage of Constitution 122nd Amendment Act Bill. India is a centralized democratic and therefore the GST will be implemented parallel by the central and state governments as CGST and SGST respectively. The objective is to maintain a commonality between the basic structure and design of the CGST, SGST and IGST between states .In this article, I have started with the introduction, in general of GST and have tried to highlight the objectives the GST is trying to achieve. Thereafter, I have discussed the possible challenges and threats; and then, opportunities thatGST bring before us to strengthen our free market economy.