Goods and Services Tax in India – Its Influence and Implications for the Stakeholders

Abstract

India is a federal democracy, the one which has clear demarcation of powers, responsibility and revenue collection between the states and the Centre in its constitution. The next logical step that is taken towards a widespread indirect tax reforms in India is the introduction of Goods and Services Tax (GST). The new GST regime will trigger a transformational shift from a complex multi-layered indirect taxation system to a unified indirect taxation system. GST will also propagate a positive change by ensuring cascading of taxes is reduced, thus leading to manufacturing synergy in India. Goods and Services Tax or GST is a consumption-based tax, which is levied on goods and services at the place where final or actual consumption takes place. It will be collected on value-added goods and services at each stage of sale or purchase in the supply chain. Goods & Service Tax (GST) would be to eliminate the double taxation. GST is also known as the Value-Added Tax or VAT. It will replace all indirect taxes levied on goods and services by the Indian Central and state governments. The new GST regime will trigger a transformational shift from a complex multi-layered indirect taxation system to a unified indirect taxation system. This article gives insights into the implementation of GST in India. It focuses on the influence and implications of GST on the various stakeholders like the customers, businesspersons, government.

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