Goods and Services tax(GST) is an indirect tax on goods and services. It laid emphasis on one tax rate across the nation that paved the way for cooperative federalism. The author's musings on GST reform is critically analysed in this article in the context of Indian economy. Under the new tax regime, GST in India has four tax rates: 5%, 12% ,18% and 28%. Economic think-tank believe hopes that the GST integrates the 2 trillion economy with 1.3 billion customers into a single entity. The benefit of GST is minimal cascading tax effect, tax compliance and it gives the degree of certainty and unambiguity. GST may be counted as a proportional tax (same tax rate) as the tax rates are expressed in terms of percentage rather than income. There is an exempted list of over 80 essential commodities ranging from meat , egg, milk, salt, bread to plastic bangles under GST. The tax revenue from the petrol, alcohol and part of real estate(ready-to-move-in apartments with completion certificate)that prove to be a cash cow for the government , not under the ambit of GST. The GST will bolster GDP growth in the longer term, despite teething-problems in the initial phase.
Specialisation, Goods and services Tax, regressive tax, proportional tax, transaction value, economic growth, marginal tax rate, average tax rate.
Dr.N.Pakshi Rajan "Critique Of Dialectical Reason To Welcome GST In India" Iconic Research And Engineering Journals Volume 1 Issue 4 2017 Page 1-3
Dr.N.Pakshi Rajan "Critique Of Dialectical Reason To Welcome GST In India" Iconic Research And Engineering Journals, 1(4)