Goods & Services Tax: A Way to Tax Reforms in India

Abstract

The fact is that Goods and Services Tax (GST) is an important perfection and a logical step towards widespread indirect tax reforms in India. The GST rule was commenced in India on 1 July, 2017 and was applicable throughout India. The first mention of the bill was in 2009 when the previous UPA government opened a discussion on it. They were successful in introducing the bill but failed to get it passed. On 17th December 2014, the NDA government made slight changes to it and redefined it in the Lok Sabha. The bill got cleared on 6 May,2016 . However the current challenge was that it needed two-third majority of both houses and 50 percent of the state assemblies to ratify it. Further, Punjab and Haryana were reluctant to give up purchase tax, Maharashtra was unwilling to give up octroi, and all states wanted to keep petroleum and alcohol out of the ambit of GST. Gujarat and Maharashtra want the additional one per cent levy extended beyond the proposed two years, and rose to two per cent. Punjab wanted to purchase tax outside GST.  The present research paper highlights some key aspects of GST in India in the current scenario.