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

The concept of goods and service tax (GST) and its impact on indian economy

Shanthini B.N
Assistant Professor of Commerce, N.K.R. Govt. Arts College for Women, Namakkal
Leeladevi C
Assistant Professor of Commerce, N.K.R. Govt. Arts College for Women, Namakkal
Published June 30, 2017
Keywords
  • goods and services tax, economic development, Indian economy and value added tax. Introduction
How to Cite
B.N, S., & C, L. (2017). The concept of goods and service tax (GST) and its impact on indian economy. Journal of Management and Science, 7(2), 362-367. https://doi.org/10.26524/jms.2017.54

Abstract

Goods and Services Tax (GST) is a comprehensive tax levy on manufacture, sale and
consumption of goods and services at national level. Goods and Services Tax integrates State
economies and boost overall growth. Currently, companies and businesses pay lot of indirect
taxes such as VAT, service tax, sales tax, entertainment tax, octroi and luxury tax. On GST
implementation all these taxes cease to exist. There is only one tax, that too at the national
level, monitored by the central government. GST is levied at the final point of consumption
and not at the manufacturing stage. Previously, separate tax rates are applied to goods and
services. Under GST, there is only one tax rate for both goods and services. The goods and
services Tax is an improvement towards a comprehensive indirect tax reforms in the country.
Integration of goods and services taxation would give India a world class tax system and
improve tax collections. It would end distortions of differential treatments of manufacturing
and service sector. GST is expected to create a business friendly environment and hence
inflation rates would come down overtime as a uniform tax rate is applied. It will also
improve government's fiscal health as the tax collection system would become more
transparent, making tax evasion difficult. This paper is a study of the concept of goods and
service tax and its impact on Indian economy. It also aims to know the advantages and
challenges of GST in Indian scenario

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