Published Online:October 2024
Product Name:The IUP Journal of Law Review
Product Type:Article
Product Code:IJLR011024
Author Name:Mohammad Nizam Ashraf Khan
Availability:YES
Subject/Domain:Law
Download Format:PDF
Pages:5 - 13
The introduction of the Goods and Services Tax (GST) in India marked a significant milestone in the country’s economic and fiscal landscape. As a unified tax structure, GST has replaced a complex web of indirect taxes, streamlining the tax system and enhancing the ease of doing business nationwide. The present paper explores the transformative impact of GST on India’s economy, and its status as the preferred tax structure in the country. The implementation of GST has harmonized tax rates across states, reducing the cascading effect of taxes and eliminating the inefficiencies that characterized the previous system. The tax reform has been instrumental in creating a common national market, enhancing the competitiveness of Indian businesses on a global scale. Moreover, the simplicity and transparency of GST have contributed to improving tax compliance, broadened the tax base, and boosted government revenues. This paper also delves into the economic implications of GST, particularly its impact on inflation, consumption patterns, and overall economic growth. By reducing the tax burden on both consumers and businesses, GST has stimulated economic demand and fostered investment. Additionally, the paper examines the challenges faced during the initial stages of GST implementation, including technical glitches, compliance issues, and continuous updates to the GST framework to address sector-specific concerns.
A proverb from Kautilya’s Arthasasthra, considered the earliest book on economics, states that the most effective method of taxation is one that is liberal in assessment and brutal in collecting. The implementation of Goods and Services Tax (GST) appears to be inspired by this principle.