Goods and Service Tax: Economic Revival of India. Issue 1 (June 2018)

• Record Type: Journal Article
• Authors: Tiwari, Hemlata; Singh, Shambhu Nath
• Is Part Of: Paradigm. Volume 22:Issue 1(2018:Jun.)
• Page Start: 17
• Page End: 29
• Publication Date: 2018-06
• Subjects: Economic development -- employment generation -- increase in revenue -- sectoral growth; Management science -- Periodicals; Industrial management -- India -- Periodicals; 658
• DOI: 10.1177/0971890718758198
• Languages: English
• ISSNs: 0971-8907

Abstract

The Indian government has taken a major step in the direction of indirect tax reform. Since 1 July 2017, it implemented goods and service tax (GST) in place of other indirect taxes. The idea behind GST is to bring uniformity in goods and services price across the nation. This new system brings a lot of transparency in indirect tax structure of our country. It will also help in tracking tax evasion. GST will bring a lot of changes in Indian economy. This will also help in removing obstacle of doing business in our country. In this way, it will attract lot of domestic and foreign investors to set up their business in India. Once foreign companies start their operation in India, they will hire lot of Indian youth to do work in their business. This will pave the way to sort out the problem of unemployment in India and enhance our foreign exchange reserve. Business development will further enhance the infrastructure growth in our nation. It will direct the path of growth in government revenue and support government initiatives such as Make in India, Digital India and so on. In this way, GST will give a spur to Indian economic growth prospects. The above-mentioned growth path will make Indian equity market lucrative for domestic and foreign investors. Here, we can say GST will not only simplify indirect tax system but also give a way of further economic development of our nation.