GST Rollout in India and Its Impact on Economy: A Conceptual Study

Abstract

In previous scenario of Indian tax structure, various direct and indirect taxes paid by the person to government. To overcome this taxation burden, Central Government has decided to make one tax policy i.e. Goods and Services Tax (GST). It is an indirect tax which levied by the state and central governments of India. After the one hundred and twenty second Amendment Bill, it is introduced in the Constitution of India. It is a biggest tax reform since 1947 in Indian Tax System on the supply of goods and services. The GST has bound together 17 indirect central and state taxes as VAT, Luxury Tax, Tax on lottery, betting and gambling, Entertainment tax, Purchase tax, State cess, Electricity duty, Central Excise Duty, Commercial Tax, service tax and tax on advertisement into a unified tax structure. The main purpose of GST is to compile all these different taxes and levied a single comprehensive tax. This paper is through light on the impact of GST on Indian economy by change in price of different sector products.