GOODS AND SERVICE TAX (GST) IN INDIA: A BEACON OF HOPE FOR INDIAN ECONOMY

Abstract

The introduction of GST would be a very noteworthy step in the field of indirect tax reforms in India.  By amalgamating a large number of central and state taxes into a single tax it would alleviate cascading or double taxation in a major way and pave the way for a common national market. The biggest benefit is that it will disincentivise tax evasion.  A lot of currently underground transactions will come overground with the introduction of GST. Once GST comes into effect, all central and state level taxes and levies on goods and services will be subsumed within an integrated tax having 2 components- a Central GST and a State GST. France was the 1^st  country in the world to introduce GST system in 1954 and almost 160 countries across the world have already implemented the GST. This paper presents an overview of GST concept, features and impact on various industries and on Indian economy.