GST: Pros and Cons

Today, India has become the world's sixth-biggest economy. There is a very important role of taxation in our country for redistribution of wealth in Indian economy. There are two types of taxes which are applicable in India: direct tax and indirect tax. Goods and services tax is one of the indirect tax which was introduced in India on 1 July 2017 and was applicable throughout India, to make for the views of one nation one tax. In the past business sector used to pay a lot of indirect tax such as VAT, Service tax, entertainment tax and luxury tax. After the implementation of GST all these are now removed. There is only one tax which is applicable in present time and controlled by our government of India. There are four tax rates namely 5, 12, 18 and 28%. Some goods and services would be exempt. The GST promotes Indian market competitiveness by removing cascading taxes and makes a common market in time of globalization. The study aims to analyze positives and negatives impacts of GST in Indian economy and what is the effect of GST on the producer and services sector in India.