GST and its Impact on Selected Economic Variables

Abstract

Goods and Service Tax(GST) being India’s biggest indirect tax reform since independence is based on the idea of “One Nation, One Tax, One Market “. It is the tax which has subsumed 23 cess and 17 indirect taxes levied by the central and state government like excise duty, service tax, VAT, etc. and is mainly expected to address the issue of cascading effect of the earlier tax structure. However, since its implementation i.e. on 1^st, July, 2017 the government is changing its provisions every now and then and thus leading to the situation of ambiguity and chaos. It is not wrong to state that it is like” Building a ship while sailing”. So, this paper tries to explain the shortcomings and the problems which people are facing in the current GST regime. The paper also analyses the impact of GST on macroeconomics factors like inflation, GDP and on other factors like industrial growth, tax revenue, etc.