Gst : A Boon Or Bane To Indian Economy

INTRODUCTION
Multiplicity of taxes, some levied by the
State, others by the Centre and yet a few levied
by the Centre and shared with State created much
confusion and chaos in doing business in India.
It also hampered the economic progress of the
nation. A regime of multiple taxation and even
double taxation was a fertile breeding ground for
corruption and discouraged higher investments
by the private sector. The Goods and Services
Tax Bill or GST Bill, officially known as The
Constitution (One Hundred and Twenty-Second
Amendment) Bill, 2014, is a legislation which aims
to end this confusion and chaos by introducing a
national Value Added Tax implemented in India
from July 1 2017 called the “Goods and Services
Tax”. This tax is a comprehensive indirect tax on
manufacture, sale and consumption of goods and
services throughout India, which has replaced
various taxes levied by the Central and State
governments. Goods and services tax is levied
and collected at each stage of sale or purchase
of goods or services based on the input tax credit
method. This method has allowed GST-registered
businesses to claim tax credit to the value of
GST they pay on purchase of goods or services
as part of their normal commercial activity.
Taxable goods and services are not distinguished
from one another and are taxed at a single rate
in a supply chain till the goods or services reach
the consumer. Administrative responsibility
generally rests with a single authority to levy tax
on goods and services.2 Exports are zero-rated
and imports are to be levied upon the same taxes
as domestic goods and services adhering to the
destination principle.3