Reviving India's economy through goods and services tax (GST): A conceptual study

Abstract

GST is a game changer for its far-sweeping impact on businesses and end-consumers. Manufacturers, traders and service providers across India have been placed under one unified tax umbrella. They no longer need to work with a tedious array of distinct types of taxes they were previously required to comply with. Despite many of its advantages in the current ongoing scenario, the end consumer needs to improve in price hiking in basic amenities. The bill was brought to implement one tax in the country but resulted in the most significant drawback and a deadly weapon for the poor and middlemen of the country. The current picture of GST is not as rosy as it was portrayed. The code of conduct on which GST works, i.e. One Tax, One Nation, One Market, is not fit and suitable for India as the GST regime could not attain the objective of implementing the single tax system in India. This paper will assist in showing the flaws and adverse effects of GST on the economy of India. This paper presents an overview on the problem of cascading effect of the former multistage tax structure and the basic concept of GST and its benefits as well as drawbacks.