INTRODUCTION OF GST: A STEP IN THE REFORM OF INDIRECT TAXATION IN INDIAN CONTEXT

ABSTRACT

Introduction of Goods and Services Tax (GST) is a step in the reform of indirect taxation in India. Amalgamating several Central and State taxes into a single tax would mitigate crusading or double taxation, defoliating a common national market. The simplicity of the tax should lead to easier administration and enforcement. From the consumer point of view, the biggest advantage would be in terms of a reduction in the overall tax burden on goods, which is currently estimated at 25%-30%, free movement of goods from one state to another without stopping at state borders for hours for payment of state tax or entry tax and reduction in paperwork to a large extent. GST is a single tax on the supply of goods and services, right from the manufacturer to the consumer. The final consumer will thus bear only the GST charged by the last dealer in the supply chain. GST is expected to be applicable from 1 July 2017.

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