Goods and Service Tax: A Tax Reform in the Indian Economy
GST (Goods and Service tax) is the indirect tax reform in the Indian economy. The reform process was started in 1986 with the introduction of the Modified Value Added Tax (MODVAT). Despite of the success of VAT there were certain limitations. To solve these limitations, GST was introduced in the budget of 2009. It was implemented from 1st July, 2017. It is the giant tax structure which replaces VAT (Value Added Tax), additional Custom Duty, Services Tax, Octroi, etc. It is the biggest tax reform which applies on all the stages of production. More than 150 countries adopted GST. GST is expected to become a business friendly, so that it will enhance the economy. But it has many pros and cons. Through this paper we will try to understand the impact of GST on various industrial sectors as well as overall Indian economy. It would be interesting to understand whether it will encourage or discourage the economy.
Keywords - Goods and service tax, Value Added Tax, Economy.