Vol. 7 No. 2 (2017): Vol 7, Iss 2, Year 2017
Articles

Pros and cons of indian goods and services tax in economic

Nithya S
Head, Department of Commerce Madurai i akasiNadarsPioneer Meenakshi Women’s College- Poovanthi
Published June 30, 2017
Keywords
  • Indian economic, GST, VAT
How to Cite
S, N. (2017). Pros and cons of indian goods and services tax in economic. Journal of Management and Science, 7(2), 356-361. https://doi.org/10.26524/jms.2017.78

Abstract

The Goods and Service Tax Bill passed recently by the RajyaSabha and the LokSabha
has been getting a lot of attention lately. Mainly because it is ‗The Next Big Thing‘ after the
Financial Reforms of 1991 in the history of India‘s economy. We all know that the
multiplicities of indirect taxes have driven up the prices of goods and services. Moreover,
they make taxation complicated. Further, these taxes are different in each state and businesses
end up paying tax on taxes.So basically, GST rationalizes this whole bucket of indirect taxes
and attempts to unify most of them to make for a destination base tax, thereby making India a
unified market. It is estimated that the GDP of the country will rise by 1 – 2 %. Let‘s have a
look at the GST impact on business in the country.Consumers are expected to benefit from
reduced prices of goods and services, which in turn increase consumption. Improved demand
and simplified tax structure will help attract increased FDIs and FIIs and boost overall
economic growth. At the same time state and Central governments are likely to benefit from a
broader tax base.

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