Emerging Issues on GST

Abstract

In the present globalized scenario, goods and services tax or GST as it is known is all set to be a game changer for the Indian economy. GST has far reaching consequences and implications and effects especially on the attainment of cost effectiveness. This is a concept which revolutionizes the face of fiscal federalism in the country and there could be a fundamental deviation from the existing powers relating to tax structure between centre and states. GST would repeal the powers to work out and impose excise duties, custom, VAT, SERVICES TAX, sales tax and purchases tax which are under the purview of centre or states. A sound, effective and easy GST regime should be implemented to all sectors of the economy. The main purpose of the GST is to bring to end existing tax administration. Thus going forward on all transactions in business of goods and services, only one tax will apply, it is GST. GST is comprising of CGST and SGST. IGST would be applied instead of SGST for interstate transactions. For successful implementation of GST, it is necessary that the government at both centre and state levels, agree to merge all their taxes into CGST/SGST.