International Journal of Commerce and Management Research

Authors
Arpit Shailesh, Dr. Taruna

Abstract
A very significant improvement over the local sales tax system is Goods and Services Tax (GST). GST, one of the biggest taxation reforms in India is all set to assimilate Economies of the State and boost up the overall economic growth. At present businesses pay lot of indirect taxes such as Service Tax, VAT, Sales Tax, Luxury Tax, Octroi and Entertainment Tax. All such indirect taxes would cease to exist just after the implication of GST. Thus, there would be only one tax, at the national level, and that too monitored by Central Government of India. Currently several tax rates are imposed on different goods and services, but after the implication of GST there would be only one tax for every good and services. Assimilation of taxation of goods and services would be a great move by the Indian Government and would also help them in tax collections. The expectations from GST is to create a business-friendly environment, as cost price and henceforth, rate of inflation would fall over a period of time as a uniform tax rate would be applicable. An attempt is made in this paper to study the need of GST in India and the impact of GST on Indian Economy.