GST and Indian Economy

Abstract

According to J.P. Morgan, the well-known economist, "The GST is arguably one of India's most significant and ambitious reforms ever attempted". By replacing a confusing mass of central, state, interstate and local taxes—among the most common complaints of foreign businesses—the GST is widely expected to transform India into a common market, bringing with it increased efficiency and productivity. GST, it’s the talk of the town. What is GST, its historical journey and destination? Finally, why one should talk and care about GST? In simple words GST is one kind of taxation. It was proposed to avoid double / multi-taxation on the same goods and services from one customer / clients to another. Present taxation makes several unfair competition in the local as well as international market. Central and State Governments are trying to fill this gap and cascading taxation on the same goods and services provided to customer/clients. GST will affect on every section of Indian economy, from small to medium and large organization/companies. It will include intermediaries, traders, import and export businesses, professionals / service providers and finally to the kingmakers; the consumers. GST is going to replace all indirect taxes once it is implemented through out the nation at one time. This paper discusses the historical journey of GST, objectives, challenges, achievements and hurdles in implementation of the new tax regime in India.