GST in India: A Significant Reform in the Indirect Taxation System

The concept of implementing a uniform type of tax across the country was initially proposed by the Atal Bihari administration. Under the chairmanship of Asim Das Gupta, a committee was formed to develop a complete GST structure. Mr. Pranab Mukherjee, India's then-Finance Minister, revealed the GST design in July 2009. In March 2011, the government introduced the 115th Amendment Bill for GST. After opposition from the opposition parties, the bill was referred to the Standing Committee. In May 2015, the Lok Sabha passed the amendment bill and announced that petroleum would be kept out of the purview of GST. In September 2016, the President signed the bill and gave assent to enactment. Indirect tax reform finally came into force in India on 1 July 2017. It is a dual-taxation system comprised of CGST and SGST. CGST is a central tax, whereas SGST is a state tax. Purvanchal area of state Uttar Pardesh has been selected for the current study. The data gathered from 318 respondents who are involved in business activity was considered to be accurate and appropriate for research purposes. Majority of respondents agreed that uniform tax law is good for business for both at centre and state level. Overwhelming majority opined that A single tax regulation can promote synergy between operations and business.