Impact of goods and service tax on Indian economy

GST otherwise called the Goods and Services Tax is characterized as the mammoth indirect tax structure which is intended to help and improve the financial as well as the economic development of a nation. In excess of more than 150 nations have implemented GST up until this point. Nonetheless, the possibility of GST in India was mooted by Vajpayee Government in the year 2000 and the sacred change for the same was passed by the Lok Sabha on 6th May 2015. On bringing GST into action, there was an amalgamation of Central and State taxes into a singular obligation portion. It also enhanced the circumstance of India in both, nearby and worldwide market. This concept is not new as it was prevalent before GST came in the indirect taxes. It is just that the scope has widened. Earlier, it was not possible for a tax payer to claim Input Tax Credit for Central Sales Tax, Entry Tax, Luxury and other taxes. Moreover, the manufacturers and the service providers could not claim the Central Excise Duty. The Goods and Service Tax is a multi-tier tax where ultimate burden of tax falls on the consumer consuming the good or service. It is called as Value Added Tax as at every stage, with every addition of value, tax is being paid. Under this scheme, an individual who was liable to pay tax on his or her output- whether for provision of service or for sale of goods.