Goods & Service Tax: A Revolution in Indirect Tax Regime

A single, all-encompassing tax on goods and services consumed in an economy is known as a “goods and services tax.” “One Nation, One Tax, and One Market” is the primary goal of the GST. Overall, it is straightforward, effective, and will boost the nation’s economic growth by getting rid of a number of state and federal taxes including the VAT, excise tax, and services tax, among others. With its streamlined tax bands of 0%, 3%, 5%, 12%, 18%, and 28%, the Goods and Service Tax (GST) represents a significant change in the indirect tax system. The goods and services are categorised under a specific subject, and the items are given an HSN number while the services are given a SAC code. (Service Accounting Code, HSN, Harmonized System of Nomenclature) In this study, we examine the effects of the GST on the economy while concentrating on the issue that business owners are expected to encounter (the fixation of MRP), which is the cornerstone of the Indian economy and accounts for more than 60–70% of GDP. GST was introduced in India, though, in 1999. A committee was formed to develop the GST concept. However, on July 1, 2017, the Indian government reinstituted GST. There was a lot of uproar in support of its execution. All of the different taxes levied by the federal and state governments were replaced with the GST. The phrase “One Nation, One Tax” refers to the fact that all taxes must be paid in one location nationwide. The abolition of bundled indirect taxes like VAT, CST, Service Tax, CAD, SAD, and Excise is the main benefit of the GST. It tries to eliminate the cascading effects of taxes and promote credit flow.