ABSTRACT

The Good and services tax (GST) is the biggest and substantial indirect tax reform since 1947. The main idea of GST is to replace existing taxes like value-added tax, excise duty, service tax and sales tax. It will be levied on manufacture sale and consumption of goods and services. GST is expected to address the cascading effect of the existing tax structure and result in uniting the country economically. The paper highlights the background, objectives of the proposed GST and the impact of GST in the present tax scenario in India. The paper further explores various benefits and opportunities of GST. Finally, the paper examines and draws out a conclusion.

The word ‘tax’ is derived from Latin word , tax is which means to estimate.  A tax is  an enforced  contribution, exacted pursuant to legislative authority. Indian Taxation System comprise of- Direct and Indirect Tax. Goods and Services Tax (GST) is one of the most discussed Indirect Taxation reforms. It is a comprehensive tax regime levied on manufacture, sales and consumption of goods and services. It is expected to bring about 2% incremental GDP growth of the country. So, GST is the need of the hour.

Section 1 of the article introduces the GST, its objectives and Present Indirect Tax structure as well as its major reforms. Section 2 of the article examines the impact of GST on the economy and studies the effect of GST on certain sectors. Section 3 of the article discusses various benefits and opportunities of GST. Section 4 laid down the key suggestions and conclusion of the article.

Keywords: GST, Tax, Indirect & Direct Tax,