IMPACTS OF GOODS & SERVICES TAX ON MAJOR SECTORS OF INDIAN ECONOMY
Dr. Ashok Kumar Gupta
Manuscript Type: Theoretical Study
Research Issue: Goods and Services tax (GST) is a comprehensive, consumption, and destination based tax which is levied on manufacture, sale, and consumption of goods and services at a national level. The main purpose of GST is to eliminate the compounding effect of taxation by fixing the single tax rate and to create a single, unified Indian market to boost India’s economic development by integrating state economies and provide a common market for goods and services. After its implementation from 1st July’2017, it has affected all the sectors of Indian economy positively and negatively both. To offer relief to consumers and businesses, decisions on reduction of GST rate on various products and services and changes in compliances procedures have been taken in the 22nd and 23rd GST council meetings held in October and November respectively.
Research Objective: The main aim of the study is to study the implications of GST on major sectors of Indian Economy.
Method of Data Collection: The data for the study has been collected through secondary sources which include various articles, journals, reports, different websites etc.
Goods and Services tax is implemented with an aim of “One Nation, One Tax, and One Market. It will help to improve economic growth of the country and will increase the GDP of the country. It will reduce the tax burden of manufactures and fosters growth through more production, more exports, and more employment. Individuals will be benefitted from lowered prices of goods which will lead to more consumption thereby benefiting the manufacturing companies. Overall, it has both the pros and cons for different sectors of economy but it is good step towards the economic development of the country and benefits of which can be seen in the long run. Reduction in GST rates and ease in compliance will benefit the consumers and businesses both.
KEYWORDS: Goods and Services tax, GST rates, demonetization, single tax rate