Impact and Benefits of GST on Indian Economy

GST also known as the Goods and Services Tax is defined as the giant indirect tax structure, designed to support and enhance the economic growth of the country. Removal of bundled indirect taxes such as VAT, CST, Service tax, CAD, SAD, and Excise. Less tax compliance and a simplified tax policy compared to current tax structure. Reduction of manufacturing costs due to lower burden of taxes on the manufacturing sector, .More than 150 countries have implemented GST, so far. However, the idea of GST in India was mooted by Vajpayee government in 2000 and the constitutional amendment for the same was passed by the Loksabha on 6th May 2015, but is yet to be ratified by the Rajyasabha. Amidst economic crisis across the globe, India has posed a beacon of hope with ambitious growth targets, supported by a bunch of strategic undertakings such as the Make in India and Digital India campaigns. The Goods and Services Tax (GST) is another such undertaking that is expected to provide the much needed stimulant for economic growth in India by transforming the existing base of indirect taxation towards the free flow of goods and services. GST is also expected to eliminate the cascading effect of taxes. India is projected to play an important role in the world economy in the years to come. The expectation of GST being introduced is high not only within the country, but also within neighbouring countries and developed economies of the world. The key announcements included the further extension of the due date of filing of the GST annual return (GSTR-9) and reconciliation statement (GSTR-9C), rationalization of rates, higher registration thresholds and clarifications regarding refund related issues that are being faced by the taxpayers. The Indian government introduced the new indirect tax system that is goods and services tax, constitution amendment 101 implemented on 1st July, 2017, after implementation of Goods and Service Tax that benefits and impact to the Indian Economy, also impact on manufacturer, Wholesaler, Retailer and Consumer. This paper consists, benefits, how impact of goods and services tax on Indian economy for new futures of tax services value to provide best growth of national economic environment for smooth, speed of national income growth in the country.