continuously growing tax base.
The merger of all indirect taxes into a single tax
structure resulted in benefits to various sectors
like FMCG, Start-ups, and Real Estate, etc. It also
put a curb on the illegal transactions through the
implementation of the e-way bill and online
uploading of invoice details. “The availability of
all facilities of filing and payment electronically
has curbed tax evasion," as Vishal Raheja, DGM
Taxmann, one of the leading publishers of Tax
and Corporate Laws in India, told Media India
Group (Singh: 2018).
IMPACT OF GST IN ONE YEAR :
GST has dismantled inter-state trade barriers
and converted India into a unified market of 1.3
billion cit izens. With the government
emphasizing curbing black money, GST can
significantly complement this effort, being less
intrusive, more self-policing, and hence a more
effective way of reducing malpractices and rent-
seeking. The most significant tax reform, i.e.,
Goods and Services Tax is now a part of Indian
Economy. A new and unified tax structure is
followed for indirect taxation on the place of
various tax laws like Excise duty, Service Tax,
VAT, CST, etc. and for sure the new tax regime is
determined to eliminate the cascading effect of
tax on transaction of products and services, and
it will result in availability of products and
services to consumers at lower prices. It is
expected that it will be helpful in increasing
production and the purchasing power of the
buyer which may increase the GDP by 1% to 3%.
Recently, India accounted for 7.7 percent growth
for the Q4 of FY 2017-18, and it is now higher
than China's GDP growth rate of 6.8 percent for
the same period. India's GDP has been recorded
at 7.7 percent in the quarter of January – March,
with a fast approach towards better number than
4
7.0 percent in the previous quarter. There are
some expectations for 6.7 percent growth in the
financial year 2018 further to increase to 7.3
percent and 7.5 percent in the FY 19 and FY 20
respectively.
GST : POSITIVE IMPACT ON GDP
Now, there is only one tax rate for all which will
create a unif ied market regarding tax
implementation, and the transaction of goods
and services will be seamless across the states.
The same will reduce the cost of the deal. In a
survey, it was found that 10-11 types of taxes
were levied on the road transport businesses. So
the GST will be helpful to reduce transportation
cost by eliminating other taxes (Sukhnani:
2018). After GST implementation the export of
goods and services will become competitive
because of nill cascading effects of taxes on
goods and products. In a research done by
NCAER, it was suggested that GST would be the
key revolution in Indian Economy and it could
increase the GDP by 1.0 to 3.0 percent. GST is
more transparent in comparison to the previous
provisions in the law so it will generate more
revenue for the Government and will be more
effective in reducing corruption at the same
time. Overall, GST will improve the tax
compliances
In a report issued by the Finance Ministry, it was
mentioned that the GST structure would more
benefit make In India programme due to the
availability of input tax credit on capital goods.
As the GST will subsume all other taxes, the
exemption available for manufacturers in regard
to excise duty will be taken off which will be an
addition to Government revenues which could
increase GDP.
The GST regime has a substantial impact on
many things including the GDP. The Gross
Domestic Product tends to loom on the
shoulders of revenue generated by the economy
Economic Challenger// ISSN 0975-1351/ Issue 81, October - December 2018