Abstract:

GST will be significant step towards a comprehensive indirect tax reform in the country since 1947. The basic idea of GST is to replace existing tax levies like VAT, excise duty, service tax and sales tax by levying a comprehensive tax on the manufacture, sale and consumption of goods and services in the country. GST is expected to build a transparent and corruption-free tax administration. GST will divide the tax burden equitably between manufacturing and services. Goods and Services tax is planned at creating single and uniform market that will benefit both corporate and the economy.

This paper presents the Need for GST and the Challenges for success of GST in India.

Keywords: Goods and Service Tax, GST, VAT, Input credit