Goods And Service Tax

Abstract

Tax is the largest source of revenue in India. The revenue generated by the Government is used for the development of nation’s infrastructure. The taxes are being collected by way of income tax, customs duty, goods and service tax, etc. The major source of tax revenues for Government are from Indirect tax which consists of customs duty which is levied on imported goods and Goods and Service Tax (GST) which is levied on commodities and services.GST came into existence on July 1, 2017 and on July 8, 2017 on the states of Jammu & Kashmir as a single uniform tax across the nation. The primary objective of introduction of GST is to subsume different types of taxes such as Value Added Tax, Central Excise Tax, Service Tax etc., into single tax system in India. The various tax rates are 0%, 5%, 12%, 18%, 28%. The taxes levied by the government are Central GST (CGST), State GST (SGST)/Union Territory GST (UTGST), Integral GST (IGST). As there is no direct pinch of tax payment, the risk of tax evasion is lesser compared to that of direct tax. The burden of tax payment is transferred from manufacturer to the ultimate end consumer. It is regressive in nature where rich and poor taxed equally. In this paper presented, we study the indirect tax structure during the pre and post GST regime based on primary Data collected from 50 questionnaires and recent developments in GST.