Article Details
  • Published Online:
    October  2024
  • Product Name:
    The IUP Journal of Law Review
  • Product Type:
    Article
  • Product Code:
    IJLR051024
  • Author Name:
    Anindhya Tiwari and Kanakshi Nema
  • Availability:
    YES
  • Subject/Domain:
    Law
  • Download Format:
    PDF
  • Pages:
    65-78
Technical and Administrative Complexities in the Evolution and Implementation of India’s GST System
Abstract

Since its implementation on July 1, 2017, Goods and Services Tax (GST) has undergone several phases of adaptation. Key innovations like e-way bill for real-time goods tracking and anti-profiteering measures were introduced to prevent exploitation by suppliers and mitigate tax evasion. However, despite its ambitious goals and potential for digital transformation, GST implementation has faced significant technical and administrative challenges. This paper examines these challenges, including issues with the Model Return System, complexities of transitional credit, difficulties in e-way bill system, and enforcement of anti-profiteering provisions. The paper further analyzes the impact of frequent circulars and notifications amending GST provisions, which have led to confusion and compliance uncertainties for taxpayers. While several challenges have been addressed, many persist even after seven years of GST’s operation. Frequent amendments, often implemented through trial and error, continue to complicate the tax system. This paper proposes solutions to overcome these issues. It recommends on enhancing the efficiency, transparency, and compliance of India’s GST regime, with the ultimate goal of boosting economic growth and taxpayer confidence.

Introduction

Replacing numerous central and state-level indirect taxes such as excise duty, valueadded tax (VAT), and service tax with a unified system, the Government of India introduced the goods and services tax (GST) regime on July 1, 2017. A single online system serves as a one-stop platform for businesses to register, file returns, claim ITC, and make tax payments.