Goods and Services Tax: An Introductory Study of its Impact on the Indian Economy

Abstract

In this article the author examines, in brief, the existing tax system in India but gradually shifts to explaining Goods and Services Tax, which is to be inducted in the Indian system soon. Though the Parliament, Government appointed Task Force and Empowered Committees have decided in favour of GST induction several public policy think tanks, despite their inclination towards the new tax, have cited roadblocks which the authorities may encounter. With many federal states opposing the conditions mentioned in the 115th Constitution Amendment Bill which seeks to implement the Goods and Services tax, it still remains a distant dream. This article studies the impact of GST in the Indian framework and by what standards would it ameliorate the nation’s high fiscal deficit once it is put into operation.

Keywords: Tax, Goods and Services Tax, GST, VAT, India, Economy, Revenue, Growth