Goods and Services Tax: Impact on Indian Manufacturing Industry
On 1 July2017, India ushered in the biggest post-independence tax reform. It is one of the biggest tax reforms that are founded in order to make one nation one tax. With the help of GST system, India is projected to play a significant role in the world economy. As there is the economic crisis is running across the globe, in that situation India has posed a great tax reform of the GST policy with the ultimate hope of ambitious economic growth. GST which is more expected to support the Indian economy effectively by just transforming the existing barriers base of indirect tax policy toward the free movement of goods and services. The Indian manufacturing industry has emerged as one of the high growth sectors in India, and the launch of ‘Make in India’ initiative further propelled and gave this sector the necessary boost. This paper evaluate the impact of GST on manufacturing industry in India and it is found that India is expected to set its global mark by becoming the fifth largest manufacturing country in the world by the end of the year 2020. In addition, the Government of India has set an ambitious target of increasing the GDP share of manufacturing industry from its current stagnant 16% to 25% by 2025. GST policy is one of the bench mark and best beneficial step taken by the government of India.