Challenges and Opportunities of Goods and Service  Tax (GST) in India

Syed Mohd Ali Taqvi; Amit Kumar Srivastava; Ravindra Kumar Srivastava

Volume : III, Issue : V, May - 2013

Challenges and Opportunities of Goods and Service Tax (GST) in India

Syed Mohd Ali Taqvi, Amit Kumar Srivastava, Ravindra Kumar Srivastava

Abstract :

The Goods and Services Tax (GST) is a value added tax to be implemented in India, the decision on which is pending. GST is the only indirect tax that directly affects all sectors and sections of our economy. Ignorance of law is no excuse but is liable to panel provisions, hence why not start learning GST and avoid the cost of ignorance. Therefore, we all need to learn it whether willingly or as compulsion. The goods and services tax (GST) is aimed at creating a single, unified market that will benefit both corporates and the economy. The changed indirect tax system GST–Goods and service tax is planned to execute in India. Several countries implemented this tax system followed by France, the first country introduced GST. Goods and service tax is a new story of VAT which gives a widespread setoff for input tax credit and subsuming many indirect taxes from state and national level. The GST Implementation is not yet declared by government and the drafting of GST law is still under process and a clear picture will be available only after announcement of Implementation. India is a centralized democratic and therefore the GST will be implemented parallel by the central and state governments as CGST and SGST respectively. The objective will be to maintain a commonality between the basic structure and design of the CGST, SGST and SGST between states. In this article, I have started with the introduction, in general of GST and have tried to highlight the objectives the proposed GST is trying to achieve. Thereafter, I have discussed the possible challenges and threats; and then, opportunities that GST ings before us to strengthen our free market economy