CAUSES AND CONSEQUENCES OF GOODS & SERVICE TAX (GST) FRAMEWORK IN INDIA

ABSTRACT

The giant indirect tax framework in India known as the Goods and Services Tax, is meant to promote and bolster the economic growth of a country. GST has been introduced in more than 150 countries. The Vajpayee government came up with the concept of GST in 2000. Growth and development may be hindered by an aggressive performance of GST. For this study, the primary goal is for researchers to get a better understanding of the in?uence of the Goods and Services Tax (GST) on the Indian economy, as well as the many features of the Indian GST system. Using data from periodicals, newspapers, and approved websites, the article is based on secondary data sources. In conclusion, I believe GST has certain bene?cial effects, such as helping to create a tax administration that is open and devoid of corruption. Small ?rms with annual revenue of between INR 20 lakhs and INR 50 lakhs might elect to pay lesser taxes under the new GST system. What it is referred to as is known as the compositional scheme. A hike to Rs. 75 lakhs has been proposed, however there are also drawbacks, such as the fact that some retail items presently only carry a 4% tax, and that after GST, clothing and apparel may become more expensive. The GST does not apply to three key tax income generators petroleum goods, alcoholic beverages, and electricity. The tax will be levied by the state government on certain industries. Tax income generated by GST would be a major factor in the inclusion of these sectors in the GST. A higher tax rate of 18 percent from the current 15 percent would have a signi?cant impact on the services industry, such as communications and restaurants. In India, the introduction of the Goods and Services Tax (GST) has had mixed results: