GOODS & SERVICES TAX: INDIRECT TAX REFORM IN INDIA

This paper is an analysis of what the impact of GST (Goods and Services Tax) will be on Indian Tax Scenario. Here stated with a brief description of the historical scenario of Indian taxation and its tax structure. Then the need arose for the change in tax structure from traditional to GST model. GST has be detailed discuss in this paper as the background, silent features and the impact of GST in the present tax scenario in India. As such, light is also thrown on how GST differs from the existing indirect taxes and its advantages over them in terms of ease in collection and how it brings out the underground activities that are not taxed by the existing taxes. This paper also focuses on the potential consequences and the hurdles that India may face due to Goods & Services Tax. Since the concept of fiscal federalism is nestled by the GST, my paper also explains how taxes will be distributed between the centre and the state. The impact on manufacturer and consumer states is also investigated in this paper.