CHAPTER-1

Introduction

Goods and Services Tax (GST) is a Value Added Tax (VAT) which is accomplished in India on

April 2016. Goods and Services Tax (GST) is an indirect tax (or consumption tax) imposed in

India onto the supply of goods and services. GST is imposed at each and every level in the

process, but it is meant to be paid back to all the parties at various levels of production other than

the end consumers.

Goods and services are separated into 5 stages of tax for the collection of tax - 0%, 5%, 12%,

18% and 28%.Whereas, alcoholic drinks, electricity, petroleum products, are the products which

are not taxed under GST and are taxed disjoint by the individual state governments, as per the

old tax regime. There is a special rate of 0.25% on rough precious and semi-precious stones and

3% on gold. In addition a cess of 22% or other rates on top of 28% GST is applied on few items

like cold drinks, tobacco products and luxury cars. Pre-GST, the allowable tax rate for most

goods was about 26.5%, Post-GST; many goods are expected to be in the tax range of 18%.

GST is one of the biggest tax reforms in India aiming to unite State economies and boost overall

growth by creating a single, unified Indian market to make the economy stronger. GST is a

comprehensive destination based indirect tax levy of goods as well as services at the national

level. Its main objective is to consolidate multiple indirect tax levies into a single tax thus

subsuming an array of tax levies, overcoming the limitations of existing indirect tax structure,

and creating efficiencies in tax administration.

GST Councils
GST Council is the governing body of GST which has 33 members. The Union Finance Minister

chairs the GST Council. The council is headed and chaired by the union finance minister Arun

Jaitley helped with the finance minister of all the states of India. GST Council is an apex member

committee to modify or to acquire any law or regulation or act which is based on the context of

goods and services tax in India. The GST council is responsible for any revision or enforcement

of rule or any rate changes of the goods and services in India.

There are various negative impact also they are:

1.Inflation Rate:

Inflation refers to the devaluation of money caused by a permanent increase in the price level of

products.

2. India‟s GDP monthly Growth Rate

India‟s economic growth was 8.4% in march 2015 which fell to 5.7% in July 2017, bottoming

out from the impact of demonetization and GST.

1.1 Profile Organization

Businessmen and Consumers.

1.2 Objective of the study

Following are the objectives of the study:

1. To study the effects of GST on Indian Economy.

2. To study the pros and cons of GST and its impact on Indian Economy.
3. To study the feature of GST.

4. To understand the structural model of GST.

1.3 Scope of study

There is a positive impact from GST on the economy but when it comes to the classification

sector-wise then the GST have both negative as well as positive impact on all the sectors. Here

are some sectors given and its GST is given below.

Automobiles: The auto sector, including the vehicle manufacturing activity, is spread across a

number of states in India and making it a very important contributor to exchequer in almost all

the States. The Automobile industry was paying a current tax rate of 30-45% and now it is

expected that with GST the rate will be around 18% which will be a very positive for the

automobile industry and that will be profitable for both the Manufacturers/ dealers and the end

consumers. The standard and the social status of the consumers get boosted. There will be a huge

increase in the Automobile Industry and there will be less burden regarding tax on the final

consumers with the result of implementation of Goods and Services Tax.

Pharmaceuticals: The imposed and currently passed GST Bill has created a lot of awareness in

the economy. The manufacturers are very positive about the new tax law regime. It will help the

business by restructuring the tax structure since eight different taxes are put together in the

pharmaceutical industry for now. Before GST the taxes on drugs was 13% but now GST is 12%

including ayurvedic and natural drugs and 5% GST on the medicines for HIV-AIDS, malaria, TB

and diabetes. GST depends upon the positive impact on the pharmaceutical part. A combination

of all these into one tax would ease working together, as well as reduce the effects of number of

taxes which is to be paid on one item.

Technology (Information technology and ITeS): The tax evaluation arrangement of GST has

made the obligation on the assembling products from 14% to 18-20%. Thus, the costs of the

product items will be high which will give either an unbiased or significantly negative effect on

the Sector of Technology as a whole. But they will be profited through the reduction of tax and

positive effect of other industries and can somewhat take the edge off it. Consumer durables are

there: The current tax rate of this industry is between the ranges of 23-25%. Under the GST tax

system it is considered to be lower around 15-18% which will put a plus effect to this industry.

Cement: The business at current pays the assessment at the rate of 25% right now. After the GST

administration; it is dependent upon to be settled at the rate of 18 to 20%. The

telecommunications sector is presently.

GST also tells about the various other scopes which are as follows:

1. GST is a system of single taxation that will lessens the number of indirect taxes.

2. In GST the prices of products and services would decrease and it proves to be beneficial for

those people who are fed up of paying high prices.

3. GST will help in the growth of the Economy.

4. The taxation system will be corruption-free.

5. Less tax compliance.

1.4 Methodology

1. The study is based on secondary data and primary data and the technique which is used for

data collection is through questionnaire. The sampling technique and the sample size are selected

according to the problem under study.

2. Factor Analysis method is used in this project.

1.5 Hypothesis

H0- Null Hypothesis: If calculated value is less than the table value then we accept the

hypothesis and consider as significance.

H1-Alternate Hypothesis: If calculated value is more than the table value then we accept the

hypothesis and consider as rejects.

 CHAPTER-2

LITERATURE REVIEW

A number of research papers and articles give a detailed insight on GST. The findings from the

literature are presented below:-

1. Dr. Shakir Shaik,Dr. S.A.Sameera, Mr. Sk.C. Firoz

M.B.A., M.Phil., Ph.D., SET-TS & AP., Associate Professor Department of Management

Studies Nimra Institute of Engineering & Technology, Ongole, M.B.A., Ph.D., Head &

Associate Professor Department of Management Studies Nimra Institute of Engineering &

Technology, Ongole, M.B.A., (Ph.D.) , SET-TS & AP., Research Scholar Department of

Commerce and Business Administration, Acharya Nagarjuna University, Guntur (2015)

Goods and Services Tax (GST) is a complete tax imposed on manufacture, sale and consumption

of goods and services at a level worldwide . One of the largest taxation reforms in India the

(GST) is all set to unite State economies and increase the overall growth. Presently, companies

and businesses pay lot of indirect taxes such as VAT, service tax, sales tax, entertainment tax,

octroi and luxury tax. After the implementation of GST, all these taxes would cease to exist. The

national level tax will be monitored by the central government. GST is also different in the way

it is imposed.

Currently different tax rates are imposed on goods and services and there would be only one tax

rate for both goods and services. An improvement towards a complete indirect tax reforms in the

country will be there. Combination of goods and services taxation would give India first class tax

system and improve the collections of tax. It is expected to create a business which will be
environment friendly, as price levels come down overtime when uniform tax rate is applied. It

will also improve government's fiscal health as the tax collection system would become clearer,

making evasion of tax difficult. An attempt is made in this paper to study the concept of goods

and service tax and its impact on Indian economy. The study also aims to know the advantages

and challenges of GST as per the Indian scenario. Tax policies play vital role in the economy

through their impact on both efficiency and effectiveness. This would impact the national

economy, International trade, firms and the consumers. It is taken into account that it is a major

improvement over the already existing central excise duty at the national level and the sales tax

system at the state level, GST is not a VAT plus service tax, but a major improvement is seen

over the previous system of VAT and services tax. A unified tax rate will help in maintaining

rationalism by treating all goods and services as same without giving any special importance to

some „special‟ goods and/or services. This will decrease the litigation on divisional complexities.

It is also expected that with the introduction of GST in the Indian framework that will lead to

many commercial benefits which were not yet touched by the VAT system and would eventually

lead to the development of the economy.

At the end they concluded the GST that will surely knock the doors of India. We will be ready to

deal with GST and many other changes that will be going to take place in India. Slowly and

steadily India shall move to join the world wide standards in taxation, corporate laws and

managerial practices.

2. Monika Sehrawat, Upasana Dhanda, M.com, NET –JRF, Delhi University, India (2015)

Monika Sehrawat discussed about the GST, she says that GST is one of the most important type

of tax reforms in India which has been long waiting. She put light on the concept of GST that
GST was supposed to be implemented from April 2010, but due to some political problems and

conflicting issues of various stakeholders it was still pending. It is a complete tax system that

will carries all form of indirect taxes of states and central governments as well as unified

economy into a absolute national market. It covers all the taxes of existing indirect tax system

and play an important role in blooming of India. In her paper she presents an overview of GST

concept, explained its features along with its deadline of enforcement in India. Her paper is more

concentrated on benefits of GST and challenges faced by India in execution.

She also discussed about the challenges, advantages and features of Goods and Services Tax

(GST). Due to nascent domain of Indian economy, it is requirement of time to apply GST.

Consumption and productions of goods and services is increasing without any doubt and because

of variety of taxes in present tax regime administration problems and consent cost is also

increasing. Thus, a simplify, user -friendly and free from obscures tax system is required which

can be fulfilled by execution of GST. Its execution will stand for a rational tax system which will

collect most of present indirect taxes and in long term it will lead to higher output, Because of

this tax system there will be lot of employment opportunities and prosper GDP by 1-1.5%. The

cost of doing business that is lowering and making of the domestic products more competitive in

local and international market is because of implementation of GDP. Without any doubt the GST

will give India a world class tax system by acquiring different treatment to manufacturing and

service sector. But all this will be subject to its rational design and timely implementation. She

also discussed about the need for more logical research to fix the battling interest of various stake

holders. As we know that it is a complete tax system that will carries all form of indirect taxes of

states and central governments as well as the unified economy into an absolute national market

and making this concept rational.

3. Sachin Abda Assistant Professor, Sanskar Institute of Management and IT, Bhuj. (2015)

He discussed about the topic “Effects of Goods and Services Tax on Indian Economy ”Present

Indian tax system is very complicated as it includes multiple effects of tax. This paper highlights

advantages, objectives, history of GST, problems against GST in India and also the models of

GST. GST, being unified indirect tax scheme for whole nation which attempts to make India a

united common market. GST referred to as Goods and Services Tax which is a major taxation

scheme that was introduced for achieving growth of economy. However, the proposal of GST

was already put forward in the Year 2000 by BJP government. Though the constitutional

amendment is passed by Loksabha for GST in May 2015 but it is yet to be examined by

Rajyasabha. India requires a cemented and defined system of GST to overcome the limitations of

VAT.

According to him concurrent Dual GST model consist of 3 main terms which are: CGST: Central

Goods and Services Tax SGST: State Goods and Services Tax IGST: Integrated Goods and

Services Tax. At the last he concluded the comparing challenges with its advantages. GST will

give Indian economy a cemented and smart tax system for economic growth. The main objective

of GST is to replace VAT; GST will be solving all the problems present in the current scenario.

GSTS will be providing ease to different parties like consumers, producers and Government.

4. Akanksha Khurana1, Aastha Sharma, Research Scholar, Department of E.A.F.M.,

University of Rajasthan, Jaipur (2016)

Her topic is about Goods and services tax in India - a positive reform for indirect tax system. The

Good and services tax (GST) is the largest indirect tax reform since 1947. The main idea of GST

is to cascade existing taxes like value-added tax, excise duty, service tax and sales tax. It will be
imposed on manufactured sale and usage of goods and services. Her paper highlights the

environmental domain, objectives of GST and the impact of GST in the current tax scenario in

India. Her paper also explained about multiple benefits and opportunities of GST and at the last

her paper concluded about GST.

She also briefed about the Rate of GST of (Some Countries) Country Rate of GST in Australia

by 10%, in France 19.6%, Canada 5% , Germany 19% , Japan 5% , Singapore 7% , Sweden 25%

and in New Zealand by 15%.

In her conclusion she discussed that GST will provide relief to producers and consumers by

providing wide and complete coverage of input tax credit set-off, service tax set off and carrying

the various taxes. Systematic formulation of GST will lead to resource and profit generation for

both Centre and States majorly through widening of tax base and improvement in tax reforms.

She further concluded that GST has a positive impact on various sectors and industry. The

formation of GST requires a lot of efforts of all stakeholders and necessary steps should be taken

accordingly.

5. Shilpa Rani , M.M. College, Commerce Department, Fatehabad, Haryana, India (2017)

briefed about the concept of Goods and Service Tax popularly known as GST was enforced in

2016.She discussed about the GST which will have a „double‟ structure format, which means it

will have 2 components- the State GST and the Central GST. GST is expected to make the tax

administration simple, which ensures the „Ease of Doing Business‟ and promote „Make in India‟

program. She concluded that GST will provide ease of doing business to producers and

consumers by providing them the wide and comprehensive coverage of tax credit set-off. More

than 150 countries have implemented GST at the consumer level and the GST would reduce the
total tax burden, which is currently estimated at 25-30%. At last she concluded that the GST have

a positive impact on Indian sectors and industry.

6. Dr. R. Rupa Associate Professor, SCMS School of Technology and Management, SCMS

Campus, Prathap Nagar, Muttom, Aluva, Cochin – 683 106 (2017)

She talked about the three models of GST which is about State GST, Central GST and Dual GST

and the advantages and disadvantages of GST and in her report she mentioned about lot of other

things about the India's tax regime which relied heavily upon the indirect taxes and the revenue

from these indirect taxes was the major source of tax revenue till tax reforms were undertaken

during nineties. The major argument for heavy dependence on indirect taxes was that the

majority of population of India is poor and thus widening the base of direct taxes which have

some limitations. But the Indian system of indirect taxation is characterized by multiple and

distorting tax on the production of goods and services which leads to distorting the productivity

and lowering of economic growth. She also discussed about the endless taxes in current system

out of which some are imposed by the State and rest levied by Centre, to remove this multiplicity

or cascading effect of taxes and lowering the burden of the tax payer for that a simple tax is

required and that is the Goods and Service Tax (GST). This paper throws light into the concept

of Goods and Service Tax, advantages, disadvantages etc.

7. Parveen Kumar (Assistant Professor, Department of Business Administration,

Chaudhary Devi al University, Sirsa, Haryana, India) (2017)

Like others Praveen Kumar also briefed about the Goods and Services Tax (GST) which is a

very big thought that simplifies the concept of large tax structure by supporting and enhancing

the economic process of a country. GST is a comprehensive tax levied on manufacturing, sales
and acquisition of goods and services at a national level. GST is designed to change from the

indirect taxes obligatory onto the goods and services by the Centre and States. His paper presents

an outline about GST concept, he also explained about its features along with the timeline of

GST implementation in India.

He also discussed about the following things like:

1. Who have to pay GST?

2. GST – How It Works In India?

3. He also included the components, applicability, credit, payment, comparison of past tax

structure and GST Tax.

At the last he also concluded that the taxation plays a significant role in the development of the

economy as a whole. From the above discussion we can conclude that the GST will bring One

Nation and One Tax market in the economy. The GST System is basically structured to simplify

the Indirect Tax system in India which is the past tax system. Because of one tax system i.e. GST

all the Indirect Taxes like Sales Tax, VAT got eliminated. As compare to past tax system in India

the GST system is very easy. The present GST system also simplifies the tax related problems

for the entire economy.

8. Subhamoy Banik, Advocate Arundhuti Das

(Assistant Professor, Dept of Commerce and Management, K.K.University, Nalanda,

India) and (Assistant Professor, Dept of Law, K.K.University, Nalanda, India) (2017)

GST or Goods and Services Tax is the biggest tax reform in India since independence which was

pending. GST is meant to simplify the indirect tax regime of India by replacing the cascading
effect of taxes by a single unified tax. It is the only indirect tax that directly connects all the

sector of Indian economy by improving the economic growth of the country by creating the

market as unified. More than 160 countries of the world have enforced GST followed by France.

The idea of GST in India was initiated by Atal Bihari Vajpayee in 1999. It was supposed to be

executed from 1st April 2010 under the flagship program of P Chidambaram then the finance

minister of UPA government but due to some political issues of various stakeholders it did not

came gets enforced. He also said that there is a huge outcry against its implementation. This

paper presents an overview of GST concept and many more.

At the end he concluded that the Goods and Services Tax (GST) is an attempt which is not

considered by the government to justify the indirect tax structure of the country. The government

should study the GST mechanism which is set up by various countries across the country and

also their limitations before its amendments. Undoubtly GST had simplified the already existing

indirect tax system and helps to overcome the multiple effect of tax. The bill was introduced to

implement unified tax but unfortunately it gets converted into a pitfall as the price of basic goods

and services had got increased. It is clear that the economy is lowering due to unplanned

implementation of GST. The possible solution for this problem is to make this change to GST

simpler and transparent.

9. Dr. Yogesh Kailashchandra Agrawal M.Com., M.Phil. (Commerce), UGC NET, Ph.D.

M.A.(Eco.), B.lib. & Isc. Assistant Professor at Smt. L.R.T. College of Commere, Ratanlal

Plot, Akola 444001 (Maharashtra) (2017)

This research paper is regarding the impact of GST on Indian Economy by Dr. Yogesh. With the

introduction of GST there is a problem and confusion amongst the common man. The aim of this
research paper is to explain the process of GST and its impact on Indian economy. In India, the

idea of GST was started in 2004 by the Task Force on execution of the Fiscal Responsibility and

Budget Management Act, 2003, named Kelkar Committee. The Kelkar Committee agreed upon

the dual GST system that shall be able to impose tax on almost each and every goods and

services and the Indian economy shall be able to have a larger market of tax base and improved

revenue collection through imposition and collection of indirect tax and more systematic

approach of efficient allocation of resources. Under the Goods and Service Tax system, every

person is liable to pay tax on output and shall be entitled to enjoy the credit on input tax paid and

tax shall be only on the amount of value added tax in GST, which tells about the principle of

"one nation, one tax, one market" which aimed at unifying the country‟s economy into a

common market. He also explained about the concept of GST which comes in the category of

five taxes: 0%, 5%, 12%, 18% and 28%. And for consumers, Apart from filling the loopholes of

the current system, it also focuses on the simplification and unification of the indirect taxes and

by this the economy will get boosted.

He also concluded that GST is at starting stage in Indian economy. He also stated that the GST

mechanism is made in such a way that the country can generate a good amount of revenue for

both the central and state government. With the implementation of GST there will be

transparency in collection of indirect taxes which will benefit both the Government and the

people of India.

10. Dr. Namita Mishra, Associate Professor, Tecnia Institute of Advanced Studies (2018)

She briefed about GST that it is a single national constant tax demanded across India on all

goods and services. In GST, all Indirect taxes such as excise duty, central sales tax (CST) and
value- added tax (VAT) etc. will be involved under a single domain. Implementation of The

Goods and Services Tax (GST) expected as an important step towards a complete indirect tax

reform in the country, which will help India towards its economic growth. The study is designed

to know the effect of GST on Indian Economy with the Help of Its effect on various sectors. The

Study consists of Secondary Data for the study. Her data is collected from various Journals,

Periodicals. Internets and Newspapers.

She discussed about Arun Jaitely the finance minister of India who said that GST is going to be a

big step towards the unification of informal economy and it will help in the increment of the

transactions which are covered in the Banking system transactions .He also said that “A new

India Has Emerged‟ and it is certain with the growth in level of demand and with this the level

of supply will also increase.

Namita also explained that the unified taxation system would stimulate new businesses and

entrepreneurs to engage in service and manufacturing sector. At the last she also concluded that

the GST which is imposed only on consumption of goods and services makes this concept simple

and transparent .This leads to reduce economic distortions in taxation amongst states and also aid

in free movement of goods, it also reduces the issues of taxation. It will also benefits the

individuals as the prices will get reduced due to GST and reduction in price leads to increment in

consumption and will directly increase the GDP. As implementation of GST applied at a time for

all the states which is lacking with policy barrier will be removed. GST will directly increase the

investments in FDIs due to which there will be the increase in the foreign exchequer of the

country which will indirectly increase the employment opportunities it will also leads to the

promotion of new startups in India.

11. Esha Bansal Assistant Professor, IEC University from Himachal Pradesh, India (2018)

Esha Bansal researched op the topic of “A Study on Impact of GST on Indian Economy”. She

discussed about the Taxation system in India before GST, Impact of GST on Indian economy,

GST in other countries of world and lot more.

Goods and Service Tax is an indirect tax imposed on the supply of goods and services. GST Law

has changed many indirect tax laws that existed previously in India. GST is one form of the

indirect tax for the whole country. There are 3 types of taxes under GST that is the CGST, SGST

& IGST. GST will mainly vanish the multiplicity effect on the sale of goods and services.

Removal of cascading effect will directly impact the cost of goods. Her paper gives an

understanding about the GST in India & its impact on the Indian Economy and also discussed

about the history of GST in India. The research objectives focused on GST as how it works &

how different sectors are affected by GST‟s implementation.

She also mentioned that taxation system in the country will become proper by GST and it will

make the economy efficient. The main motive of the enforcement of GST is to maintain

simplicity and remove biasness from the taxation system. She discussed that GST would put

India‟s indirect tax system at par with more than 140 countries. Slowly and steadily India shall

move towards the worldwide standards in taxation, corporate laws and managerial practices.

12. Dr. Arekari Shanta1, Prof. R. L. Nandargi Associate Professor, Department of

Management Studies, SCOE, Pune, Maharashtra, India Department of E & TC, IOT

Hadapsar, Pune, Maharashtra, India(2018)

Dr. Arekari Shantal briefed about the GST ecosystem in his Research Report and discussed

about the India‟s largest tax reform. A complete dual Goods and Services Tax (GST) has
replaced the cascaded effect of indirect tax structure from 1 July 2017. But the concept of GST

was first seen in 1999. It is important to know that GST is not a scheme for tax concession where

the government has decreased the rate of tax and all the goods and services would become

cheaper once GST come into force. Government was trying to fix a single Revenue Neutral Rate

(RNR) on the goods and services so that the total tax revenue of the State and the Central

Government remain equal. By keeping in view the features of India, four GST slabs have been

set at 5%, 12%, 18% and 28% for various items or services. There is also a special tax rate for

valuable metals. The rate of 18% would be applicable for most goods and services.

The imposed GST regime is not a full-hearted attempt to make the indirect tax structure

transparent. GST has been implemented in more than 150 countries. The Indian government

should study the GST regime set up by many countries and also their limitations before

enforcing it. Undoubtly, GST will make the existing indirect tax system simple and will help to

eliminate inefficiencies created by the current multiple taxation system only if there is a clear

picture over issues of set benchmark, revenue rate, and inclusion of products of petroleum,

electricity, real estate and liquor.

13. M.Sankaran and Dr.A.Sreelatha

1. Student, 5th Year, BA.L.L.B(HONS), Saveetha School Of Law, Saveetha University,

Saveetha Institute Of Medical And Technical Sciences, Chennai, Tamilnadu, India (2018)

2. Professor, Saveetha School Of Law, Saveetha University, Saveetha Institute of medical

and technical sciences, Chennai, Tamil Nadu, India (2018)

They both discussed about the impact of GST on Agriculture sector and its impact on Insurance

sector. The Goods and Services Tax (GST) is an added duty which is to be implemented in India,
a decision which was pending. GST is the main expense that influences all parts of our economy.

The products and enterprises charge (GST) is gone for bringing together market that will profit

both corporate and the economy. No qualification is made amongst merchandise and services for

collecting of assessment under the GST plot. As such, enterprises and merchandise draw in a

same rate of duty. GST consists of a multi-level evaluation where excess weight of expense fall

on the shopper of merchandise/administrations. It is called as esteem duty in ray of the fact that

at every stage, assess is being paid on the esteem expansion. Under the GST a man who was at

risk to pay assess on his produce, in spite of whether for arrangement of administration or offer

of products, is qualified for getting input in charge credit (ITC) on the expense paid on its inputs.

Enforcement of the Value Added Tax (VAT) at the Central and the State level has been

considered to be a remarkable factor in the dimension of changes in India. In the event that the

VAT is a remarkable change over the pre-existing Central extract obligation at the national level

and the business assess framework at the State level, at that point the Goods also, Services Tax

(GST) will for sure be an additional advantage.

India has seen a change in duties in the course of the last twenty years with the substitution of

State deals imposed by Value Added Tax (VAT) in 2005. Preceding VAT execution, the

assessment structure was viewed as dangerous principally due to the "falling impact of charges"

whereby a thing is burdened more than once. Exporters were less focused in the universal market

because of the large information costs included which includes taxation rate of a ware which

expands complex as it is burdened over and over through the previous deals charge mode –

reflected in higher costs of items when contrasted with contenders worldwide. To stay away

from this type of an evaluation structure, VAT was shown so imposes are paid on the "esteem

included part" by each maker and the issues of the reducing impact are eliminated.
14. Amandeep kaur

Assistant Professor, Baba Farid College, Bathinda. (2018)

Amandeep Kaur discussed about the need for GST in India and impact of GST on the prices of

Goods and Services. In India, the idea of GST was introduced in 2004 by the Task Force on

enforcement of the Fiscal Responsibility and Budget Management Act, 2003, named Kelkar

Committee.

Under the Goods and Service Tax mechanism, every person is liable to pay tax on output and

shall be given rights to enjoy credit on input tax paid and tax has to be imposed only on the

amount of value added to the goods and services. The latest tax system was introduced at a

function in Central Hall of Parliament on 1st July, 2017 (at midnight). GST, which tells about the

principle of "one nation, one tax, one market" which is focused at unifying the country to the

common market. Under GST, goods and services fall under five tax categories that are 0 %, 5%,

12 %, 18 % and 28%.

She also explained the removal of different taxes will do the ease of doing business better, for

consumers the biggest profit would be a decrease in the overall tax burden on goods. She also

briefed that the inflation will come down and avoidance of tax will become difficult. The Lok

Sabha has finally passed the Goods and Services Tax Bill and it is expected to have a great

impact on each and every industry and consumer. It also aimed at boosting the Indian economy

and this will be done by making the tax system simple and unified for all states throughout India.

At the end she concluded that because of GST there is a fall in prices of Auto Commercial

Vehicle, Two wheelers, Small cars, Midsized cars and SUV, essential items, Footwear, Building

Materials etc. and education, healthcare are going to be exempted from GST but on the other
hand, price of some other goods and services will increase after GST like Hotel room rental,

Restaurants & fine dining and Branded Apparels. There was fear of inflation before GST rolled

out.

15. Pallavi Kapila Assistant Professor, Department of Sociology, MCM DAV College for

Women, Sector 36, Chandigarh (2018)

Pallavi talked about GST and its Impact on Indian Economy and she stated that GST stands for

“Goods and Services Tax” which is executed by the Government of India since 1st April, 2017

this year. Its introduction by the Constitution Act, 2016 was considered to be one of the most

important steps in the domain of indirect tax reform structure of India. Therefore, GST was

defined as a complete consumption based tax imposed upon manufacture, sale and consumption

of goods as well as services which helped in changing the country into unified similar market.

Many arguments were raised about GST after its implementation.

The research paper will throw some light on how Goods and Services Tax (GST) would help in

decreasing the existing issues of taxes in India as it carries the Value Added Tax (VAT), Excise

Duty, Service Tax and Sales tax. The first phase of the paper talks about the introduction part.

Second part of the paper discussed about the impact of GST on Indian economy. At the last

section will focus on conclusion part of the paper.

He concluded that the enforcement of GST had played a vital role in the growth of Indian

economy. A unified and transparent taxation system in India would lead to lesser disruptions in

the market economy and more efficient distribution of resources within the industry apart from

this it would also lead to the growth in the Gross Domestic Product (GDP) .