GST IN INDIA – A SIGNIFICANT TAX AMENDMENT

The Goods and Services Tax also known as the GST is defined as the giant indirect tax structures designed to support and enhance the economic growth of a country. The proposed GST is likely to change the whole scenario of current indirect tax system. It is considered as biggest tax reform since 1947. More than 150 countries have implemented GST so far. Currently, in India complicated indirect tax system is followed with imbrications of taxes imposed by union and states separately. GST will unify all the indirect taxes under an umbrella and will create a smooth national market. The idea of GST in India was mooted by Vajpayee government in 2000 and the constitutional amendment for the same was passed by the Lok sabha on 6th May 2015. Experts say that GST will help the economy to grow in more efficient manner by improving the tax collection as it will disrupt all the tax barriers between states and integrate country via single tax rate. However, there is a huge hue and cry against its implementation. It would be interesting to understand why this proposed GST regime may hamper the growth and development of the country. GST is one of the most crucial tax reforms in India which has been long pending. It was supposed to be implemented from April 2010, but due to political issues and conflicting interests of various stakeholders it is still pending. However, Goods and Services Tax is likely to be rolled out on July 1, 2017