Prospects of GST on Indian Economy-An Econometric Approach

Levying a tax rate throughout the nation involves lots of research and challenges. Induction of GST (Goods and Service Tax) in a country like India faces lots of hue and cry. To make a country economical developed GST is introduced considering great indirect tax reforms. Since after introduction it is observed mixed thoughts amongst companies, dealers, and society. Unlike like VAT that was introduced during 1st April 200, which bring tax from multiple points on the purchase at every stage avoiding continuous taxation of a particular product. Still, it has issues in its structure at the state and central level. It is observed GST has abolished several taxes like octroi, central sales tax, state sales tax, stamp duty, turnover tax, entry tax, telecom license fees, etc. GST is widely supported by several countries as it helps to increase the GDP of a country. Due to the uniformity in the tax structure, GST will maintain a friendly environment. It is said to be a “Dual GST” as it amalgamates both central and state on a common platform. This paper shows the effect of GST at different levels like service sector, industrial sector and among the consumer.