International Journal of Commerce and Management Research

International Journal of Commerce and Management Research


International Journal of Commerce and Management Research
International Journal of Commerce and Management Research
Vol. 4, Issue 4 (2018)

A study on GST and a journey of one year


Dr. G Suresh Babu

Tax policies play an important role on the economy through their impact on both efficiency and equity. A good tax system should keep in view issues of income distribution and at the same time also endeavour to generate tax revenues to support the government expenditure on public services and infrastructure development. GST is a domestic trade tax that will be levied in the form of a value added tax on all goods and services-in practice with some exemptions. Reckoned as the biggest economic reform since independence, the Goods and Services Tax (GST) was supposed to replace the complex indirect tax system prevalent in the country with a more simplified, uniform regime. It can be argued after completion of one year of its roll-out on June 30, that while India has come a long way from a complicated taxation system, with over a dozen different taxes and many more cesses, GST is still far away from an ideal taxation regime. Even after, the one year journey of the GST, it has not been a smooth one either with fallacies and teething problems experienced from day one. While many of those fallacies were addressed by a radical government, some still remain to be resolved including simplification of return filing and further rationalization of tax rates. The first year was full of doubts & dilemmas. Apart from tax payers, tax practitioners and tax officers were also seen struggling to answer various questions. The government has taken every possible step to do away with the confusion by publishing various literatures, write ups, flyers, webinars etc. But the problems still persists. The complexity was further added by numerous notifications, circulars, press releases etc. which always cannot be tracked by common masses. During the one year of GST journey in the country, it has received positive and negative responses and still there are many unsolved practical problems. This paper focused on the issues and problems of GST during a journey of one year in the execution and to furnish the suggestions.
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