GST - Process, Framework And Impact On Economy
This paper is regarding impact of GST on Indian Economy. With the introduction of GST there is a condition chaos and confusion among common man. The aim this research paper is to explain the mechanism of GST and its effects on Indian economy. At present Indian indirect taxation structure has different types of taxes including VAT in some states, Central sales tax and multiplicity of taxes. There are problems of double taxation of commodities. For instance before the commodity is produces inputs are first taxed. Then after the commodity is produces, the output is taxed again. This causes an unfair double taxation with cascading effect. There is multiplicity of taxes such as sales tax, turnover tax, additional surcharge, cess, resale tax etc. there is a general tendency to avoid of tax this results in loss of revenue to the state. The Goods and Service Tax or GST is a taxation system where there is a single tax in the economy for goods and services.