Impacts of Goods and Service Tax on Indian Economy

Abstract

GST is one of the most crucial tax reforms in India which has been pending for a long time. It was planned to be implemented from April 2010, but due to political issues and conflicting interests of various stakeholders it is kept pending. The tax came into effect from july1,2017 through the implementation of 151 amendment by the government of India. It is expected to remove the bundled indirect taxes such as VAT, CST, Excise, Service Tax etc. and play a vital role in growth of India. GST is expected to fill the loopholes in the current system and boost the Indian economy. This is being done by unifying the indirect taxes for all states throughout India. It is also expected to eliminate the cascading effect of taxes. This paper presents an overview of GST concept, explains its impacts on Indian economy.