THE JOURNEY OF GOODS & SERVICES TAX (GST) IN INDIA: AN OVERVIEW

Abstract

GST is known as the Goods and Services Tax. It is an Indirect tax which has replaced many indirect taxes in India such as the Excise duty, VAT, Services Tax, etc. The Goods and Service Tax Act was passed in the parliament on 29^th March 2017 and came into effect on 1^st July 2017. GST is Levied on the supply of Goods and Services. Goods and Services Tax Law in India is a comprehensive, multi-stage, destination-based tax that is levied on every value addition. Goods and services are taxed with rates 0%, 5%, 12%, 18% and 28%. It would not only widen the tax regime by covering goods and services but also make it transparent. It would bring down the price of goods and services and thus increase consumption. It would create business- friendly environment and increase tax GDP ratio. It is Expected to iron out wrinkles of existing indirect tax system and play a vital role in growth of India. GST is a single domestic indirect tax law for the entire country. This paper presents an overview of GST concept, explains its features along with its timeline of implementation in India.