Impact of GST on Indian Financial System

Abstract

The Goods and Services Tax Bill or GST Bill is officially also known as The Constitution (One Hundred Twenty Second Amendment) Act, 2016 which proposes a national value added tax to be applied in India from July 1, 2017. The GST bill was initially accepted in the Lok Sabha on March 29, 2017 and got its final acceptance in the Rajya Sabha on April 6, 2017.Goods and Services Tax (GST) is an all-inclusive tax levied on manufacture, sale, and consumption of goods and services at a nationwide level. In this paper an attempt has been made to see the benefits of GST & its current status in India. Paper gives knowledge about GST and a flawless implementation would trigger an increase in the government revenue and a surge in the Indian economy. Present Indian tax system is very complex as it includes cascading effects of tax. GST, being one single indirect tax scheme for the entire nation will attempt to make India united common market. India needs a strong and defined system of GST to overcome the shortcomings of VAT. This paper highlights advantages, objectives and history of GST.