Impact of GST on Indian Business Enterprises

• Author(s): Rounak Jain ; Cheshta Agrawal ; Dr Reshma Shrivastava
• Paper ID: 1704824
• Page: 14-18
• Published Date: 01-07-2023
• Published In: Iconic Research And Engineering Journals
• Publisher: IRE Journals
• e-ISSN: 2456-8880
• Volume/Issue: Volume 7 Issue 1 July-2023

Abstract

GST, also known as the Goods and Services Tax, is a massive indirect tax system created to support and promote a nation's economic growth. More than 150 countries now use GST. The Vajpayee administration first proposed the GST in 2000. The implementation of GST could impede the nation's expansion and development. This study's main goals are to understand the impact of the Goods and Services Tax (GST) in India, to examine the various facets of the country's Goods and Services Tax system, and to investigate the impact of the GST on the Indian economy. The paper is supported by secondary data sources that were gathered from reputable websites, magazines, and newspapers. I came to the conclusion from my research that GST has some positive effects, such as its ability to create an administration of taxes that is open and free of corruption. Additionally, the GST offers a voluntary tax reduction plan for small businesses with annual revenue between INR 20 and INR 50 lakhs. The composition scheme is what it is known as. There are drawbacks to the proposed increase to 75 lakhs, such as the possibility of higher prices for clothing and apparel after the implementation of the GST, which would apply to some retail items currently subject to a four percent tax. Petroleum products, alcohol, and electricity are three major tax revenue-generating industries that are not covered by the GST. The tax will be applied to these sectors by the state government. The inclusion of these sectors in the GST would primarily be based on the tax revenue generated by the GST for the state governments. An increase in the tax rate from the current 15 percent to 18 percent would have a negative impact on the services sector, such as restaurants and telecommunications. GST therefore has mixed effects in India.

Keywords

Goods and Services Tax (GST), Indirect Tax and Indian Economy.

Citations

IRE Journals:
Rounak Jain , Cheshta Agrawal , Dr Reshma Shrivastava "Impact of GST on Indian Business Enterprises" Iconic Research And Engineering Journals Volume 7 Issue 1 2023 Page 14-18

IEEE:
Rounak Jain , Cheshta Agrawal , Dr Reshma Shrivastava "Impact of GST on Indian Business Enterprises" Iconic Research And Engineering Journals, 7(1)