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AN ANALYSIS OF THE TAX POLICIES OF A FEW INDIAN BUSINESSES BOTH BEFORE AND AFTER THE GST

ABSTRACT

The founder of modern economics once said that having a consistent tax system has many advantages. Whether this was due to possession of the "jewel in the crown" or uniformity of taxes and the ensuing free internal commerce is up for debate, but it is important to remember this. A complex web of federal, state, and municipal taxes existed in India prior to the introduction of the Goods and Services Tax (GST). The route to a harmonised indirect tax system has been prepared by the inclusion of over a hundred levies under the GST, connecting India to the rest of the world economy. In the history of India since independence, the GST is the most significant and ambitious indirect tax reform. Its goal is to impose a single, uniform national tax on all commodities and services in India. A number of Central and State taxes have been replaced by GST, which has also increased India’s level of national integration and increased the number of producers subject to taxation. It may significantly boost government revenues and growth by increasing efficiency. It may be the first time in the history of contemporary global taxes for the Centre and the States to implement a new tax that covers both commodities and services within a vast and intricate federal structure. GST is a tax on products and services that offers a long-lasting chain of advantages that may be deducted up to the merchant level. In essence, it is a tax only on value addition at each level, and a provider is allowed to deduct the GST paid on the acquisition of goods and services at each stage using a tax credit method. In the end, the person who uses the good or service—the final consumer—bears the cost of GST.

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