Impact Of GST After Its Implementation
On July 1st, 2017the GST into effect, which is stated to affect the prices of almost all consumer products and services currently offered. GST is abbreviation for Goods and Service Tax. To uphold a country's political and economical stability, governments often implement policies. There are many different types of policies that a government would implement to stabilize their country. However, one significant policy that almost every country uses is tax (i.e. Direct or Indirect tax). Claimed to be the biggest indirect tax reform since the Indian independence, experts are of the view that the GST is likely to have a positive impact on the Indian economy, with its power to reform the taxation apparatus in the country.
GST is one of the most critical tax reforms in India which has been long awaiting decision. It is a comprehensive tax system that will subsume all indirect taxes of State and central Governments and whole economy into seamless nation in national market. It is expected to remove the burden of existing indirect tax system and play an important role in growth of Indian economy. GST will also help to accelerate the overall Gross Domestic Product (GDP) of the country. GST is now accepted all over the world and countries are using it for sales tax system. This paper will help to show that, what will be the impact of GST after its implementation, difference between present Indirect Taxes and GST and what will be the benefits and challenges of GST after implementation.