INTRODUCTION applied on goods and services at

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France was the first country to
introduce the GST system in 1954.Till now, around 150 countries are following
it. In 2000 the idea of GST was introduced by the Vajpayee
government by setting up an empowered committee headed by Dr. Asim
Dasgupta. For studying GST and its impact on India, many teams and task
forces were appointed by the government. The Goods
and Service Tax Bill or GST Bill,
also  passed from Rajya Sabha on 3 August 2016 with amendments.
After moving to Loksabha, it was approved
on 08 August, 2016.GST
Act was passed in parliament on 29th
March 2017.It came into effect from 1st July 2016.

 GST stands for “Goods and Services Tax”, and is a comprehensive indirect tax levy on
manufacture, sale and consumption of goods as well as services at the national
level. It is levied on
value addition. It has
replaced all indirect taxes namely VAT, Excise duty, service tax and Sales tax.
It is aimed at being comprehensive for most
goods and services. It is a consumption based tax applied on goods and
services at the place of its consumption. The GST implementation in India is “Dual? in
nature, i.e.
India has adopted dual GST instead of
national GST. The
two components of GST in India are CGST (Imposed by Centre) and SGST (Imposed
by state and Union Territories). 
There are 3 taxes applicable under

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CGST: Collected by the Central
Government on an intra-state sale.
SGST: Collected by the State
Government on an intra-state sale.
IGST: Collected by the Central
Government for inter-state sale.

Fot the intra state  sale, the total tax would be CGST+SGST and the revenue
will be shared equally between the centre and the state. For the transactions
including interstate trade, there will be only one type of tax(Central). The centre will then
share the IGST revenue based on destination of goods.In this destination
principle the producers and traders need not shoulder the financial burden as
they are not responsible to collect taxes on behalf of government rather it is
the retail trader’s responsibility to collect tax. 
The state which consumes more is likely to benefit more than the
producing state.  As such it
paves a way to the state which is consuming more and remains in the less
developed status to tap more revenue and deploy the same for their growth and
GST besides addressing the tax evasion and corruption it
increases the productivity and alleviate poverty and economic distortions.


 2. Review of Literature

Parkhi Shilpa, 
study highlighted the challenges which the business system, tax system
has to face in new GST regime and concluded that it is the welcome move to
India’s fast paced economy .Rajesh R. Desai et al
investigated various opportunities and challenges lay ahead for the state
government in relation to GST in India.

Lourdunathan F, Xavier P (2017) investigated the
equivocal opinions among the Manufactures, traders and society about the Goods
and Services Tax (GST, the Challenges of Introduction of GST in
India and the Prospects in Implementation GSTin India .

Yogesh Garg1, Jyoti Gupta2(2017) focused on the tax
structure in india, role of government in gst and the proposed benefits of gst.

Majority of the countries following the GST
have adopted the Consumption type GST which provides input tax credit of all
the capital goods from the firm’s sales.(Shoup, 1990)

3. Objectives of the Study

study about the Goods and service act

 To examine about the GST implications on tax
structure, tax incidence and tax compliance.


Categories: Trade


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