Impacts of Goods and Services Tax on Indian Economy

Abstract

Goods and Services Tax (GST) is a comprehensive tax levy on manufacturing, sale and consumer goods and services at a national level as a vast concept GST simplifies the giant tax structure by supporting and enhancing the economic growth of a country as a whole process in a new form. Recently after the formation of NDA government in 2014 the Government of India introduces GST bill in Lok Sabha which was passed in May 2015 and then GST bill was referred to a Select Committee of Rajya Sabha for further examination. Therefore after the approval of Rajya Sabha GST was implemented w.e.f 1^st July 2017 in the whole country. It is said that it has paved a way to ‘One Country-One Tax’ regime. Meanwhile it was also hoped that GST would enhance the economical capacity of India and would free the manufacturing sector from cascading effect of taxes. And for consumers the biggest advantage would be in terms of a reduction in the overall tax burden on goods. It is also said that India’s GDP would be benefitted and extra resources would be used for welfare of poor and weaker sections. Moreover it would also bring down the prices of goods and services and thus by, increase consumption by creating a business friendly environment in Indian economy.