Abstract

The much-awaited biggest indirect tax reform GST (Goods and service Tax) has been introduced in India since July 1, 2017 as an 122nd amendment of the constitution converting India into a unified market of 1.3 billion citizens. GST was implemented on the notion of “One Nation, One Market, One Tax”. This single indirect tax has subsumed many indirect taxes of centre and states such as VAT, central excise duty, central sales tax (CST), service tax etc. besides dismantling all the inter-state trade barriers with respect to trade. But as was much touted at the time of its launch that this tax will be one of the biggest game changer that will help businessman and manufacturer by eliminating multiple taxes, cascading effects of taxes, reducing tax evasion and corruption, bringing more transparency in collection of taxes hence increasing government revenue by widening tax base and GDP of the country. But nothing proved to be true and even after nine months of its implementation and various changes made by the government, manufactures and businessmen are still in mess juggling with GSTN portal, monthly returns, various slabs of GSTetc. likewise government also facing problem with decreasing revenue, no check on corruption and new methods of tax evasion etc. Hence this paper is a modest attempt to find out why GST failed in fulfilling its objectives and what should be the way forward for GST so that it may prove a boon to the country rather than hampering the growth of the country.

Keywords: Indirect Taxes, GST, VAT, CST