scholarly journals The concept of goods and service tax (GST) and its impact on indian economy

2017 ◽  
Vol 7 (2) ◽  
pp. 362-367
Author(s):  
Shanthini B.N ◽  
Leeladevi C
Keyword(s):  
Tax Evasion ◽  
Service Sector ◽  
Central Government ◽  
National Level ◽  
Tax Rates ◽  
Tax Reforms ◽  
Fiscal Health ◽  
Tax Rate ◽  
Indian Economy ◽  
Goods And Services

Goods and Services Tax (GST) is a comprehensive tax levy on manufacture, sale andconsumption of goods and services at national level. Goods and Services Tax integrates Stateeconomies and boost overall growth. Currently, companies and businesses pay lot of indirecttaxes such as VAT, service tax, sales tax, entertainment tax, octroi and luxury tax. On GSTimplementation all these taxes cease to exist. There is only one tax, that too at the nationallevel, monitored by the central government. GST is levied at the final point of consumptionand not at the manufacturing stage. Previously, separate tax rates are applied to goods andservices. Under GST, there is only one tax rate for both goods and services. The goods andservices Tax is an improvement towards a comprehensive indirect tax reforms in the country.Integration of goods and services taxation would give India a world class tax system andimprove tax collections. It would end distortions of differential treatments of manufacturingand service sector. GST is expected to create a business friendly environment and henceinflation rates would come down overtime as a uniform tax rate is applied. It will alsoimprove government's fiscal health as the tax collection system would become moretransparent, making tax evasion difficult. This paper is a study of the concept of goods andservice tax and its impact on Indian economy. It also aims to know the advantages andchallenges of GST in Indian scenario

Tax Reforms in India since 1991: An Overview

2014 ◽  
Vol 1 (1) ◽  
Author(s):  
Vaneeta Rani
Keyword(s):  
Industrial Development ◽  
National Level ◽  
Tax Rates ◽  
Fiscal Consolidation ◽  
Tax Reforms ◽  
Tax System ◽  
Fiscal Responsibility ◽  
Indian Economy ◽  
Goods And Services ◽  
The Government

When the Indian economy faced an unprecedented macroeconomic crisis in 1991, fiscal consolidation constituted a major objective of the policy response. For this purpose, it became necessary to: (a) enhance tax and non-tax revenue, (b) curtail current expenditure growth, (c) restructure public sector undertakings, including disinvestment, (d) improve fiscal-monetary co-ordination, and (e) deregulate financial system. The need for improvements in budgetary practices led to the enactment of the Fiscal Responsibility and Budget Management (FRBM) Act, 2003 which ushered the Indian economy in an era of fiscal consolidation based on fiscal policy rules. Tax reforms introduced by the Government since 1991 have helped to build a structure which is simple, relies on moderate tax rates but with a wider base and better enforcement. Moreover, they have helped in correcting structural imbalances in the tax system. They are soft on industry with a view to create new investment climate and make India internationally competitive. By lowering the tax rates, the Government expects speedy industrial development and hence buoyancy in tax revenues. The country is keenly awaiting implementation of Direct Taxes Code (DTC) and National Level Goods and Services Tax (GST). GST is India’s most ambitious indirect tax reform. Lack of political consensus is holding up progress and implementation of GST. This paper gives a vivid account of recent reforms in the Indian tax system as a part of the on-going policy of liberalization and globalization of the Indian economy.

How fast GST is moving the Indian FMCG sector: Empirical Study

GIS Business ◽  
2020 ◽  
Vol 15 (1) ◽  
pp. 339-349
Author(s):  
Mr. Arun Gautam ◽  
Dr. Gaurav Lodha ◽  
Dr. Rohit Bansal ◽  
Dr.) M.L. Vadera
Keyword(s):  
Central Government ◽  
National Level ◽  
State Governments ◽  
Tax Reforms ◽  
Tax System ◽  
Excise Duty ◽  
Goods And Services ◽  
Beverage Industry ◽  
Food And Beverage ◽  
The Impact

GST is one of the most critical tax reforms in India which has been long awaiting decision. It is a comprehensive tax system that will subsume all indirect taxes of State and Central Governments and whole economy into seamless nation in national market. GST will be a game changing reform for Indian economy by developing a common Indian market and reducing the combined effect of tax on the cost of goods and services. GST is a consumption based tax imposed on sale, manufacturing and consumption on goods & services at national level. Several taxes such as central excise duty, service tax, central surcharge and cess etc. imposed by Central Government and VAT / sales tax, entertainment tax, octroi & entry tax, purchase tax, luxury tax, taxes on lottery etc. levied by State Governments have been subsumed under GST. The FMCG sector of India composes more than 50 % of the food and beverage industry and another 30 % from personal and household care. Under the proposed GST system, it is expected that it would result in a simpler tax system, especially for industries like FMCG. Under this system, a single product would be taxed at the same rate in every corner of the country meaning that an cooler will be taxed the same in Madhya Pradesh as well as Kerala thus we also refer GST as ONE NATION ONE TAX. This paper will help to present that, what is the impact of GST after its implementation; analyze the influence of GST on FMCG sector.

scholarly journals Recent impact of gst in india

2017 ◽  
Vol 7 (2) ◽  
pp. 288-293
Author(s):  
Gomathi N
Keyword(s):  
Economic Growth ◽  
Gross Domestic Product ◽  
Central Government ◽  
National Level ◽  
Tax Structure ◽  
Tax Reforms ◽  
Tax System ◽  
Goods And Services ◽  
National Market ◽  
Indirect Taxes

GST also known as the Goods and Services Tax is defined as the giant indirect taxstructures designed to support and enhance the economic growth of a country. In today‘sscenario to pay various taxes i.e. direct and indirect taxes, which are felt as burden on us anddue to these taxes the corruption is increasing. So, to overcome from all these taxation systemthe Central Government has decided to make one tax system i.e. Goods and Services Tax(GST). GST is one of the most critical tax reforms in India which has been long awaitingdecision. It is a comprehensive tax system that will subsume all indirect taxes of State andcentral Governments and whole economy into seamless nation in national market. It isexpected to remove the burden of existing indirect tax system and play an important role ingrowth of India. GST includes all Indirect Taxes which will help in growth of economy andproves to be more beneficial than the existing tax system. GST will also help to accelerate theoverall Gross Domestic Product (GDP) of the country. The Goods and Services Tax (GST) isa vast concept that simplifies the giant tax structure by supporting and enhancing theeconomic growth of a country. GST is a comprehensive tax levy on manufacturing, sale andconsumption of goods and services at a national level

Commentary National Goods and Services Tax (GST): The Road Ahead

2014 ◽  
Vol 1 (1) ◽  
Author(s):  
Aanchal Gupta
Keyword(s):  
Service Sector ◽  
National Level ◽  
Consumption Tax ◽  
Tax Reforms ◽  
Tax Base ◽  
Tax System ◽  
Cascading Effects ◽  
The Road ◽  
Goods And Services ◽  
Positive Externalities

Goods and Services Tax (GST) is a part of the proposed tax reforms to evolve an efficient and harmonised consumption tax system in the country. GST is proposed to be a comprehensive indirect tax levy on manufacture, sale and consumption of goods as well as services at the national level. GST would give India a world class tax system and improve tax collections. It would end the long standing distortions of differential treatment of manufacturing and service sector. The introduction of GST will lead to the abolition of various central and state indirect taxes and eliminate the cascading effects of multiple layers of taxation. It is claimed that GST will facilitate seamless credit across the entire supply chain and across all states under a common tax base. The changeover to GST will be a game-changing tax reform measure which will significantly contribute to the buoyancy of tax revenues, acceleration of growth, and generation of many positive externalities. Once the integrated GST across the country is introduced, it will simplify tax administration and eliminate cascading of taxes. It will lead to reduction in the distortions in the structure of production, consumption and exports and further to a more efficient allocation of resources. The demand for manufactured goods can be expected to grow significantly. This paper explains the modalities of the proposed GST.

Taxation in a mixed economy: the case of China

2017 ◽  
Vol 34 (1) ◽  
pp. 49-61 ◽  
Author(s):  
Davidson Sinclair ◽  
Larry Li
Keyword(s):  
Income Tax ◽  
Central Government ◽  
Corporate Income Tax ◽  
Tax Rates ◽  
Government Ownership ◽  
Effective Tax Rate ◽  
Effective Tax Rates ◽  
Content Type ◽  
Tax Rate ◽  
For Profit

Purpose The purpose of this paper is to investigate how Chinese firms’ ownership structure is related to their effective tax rate. The People’s Republic of China provides an interesting environment to examine the corporate income tax. Government has significant ownership stakes in the for-profit economy and state-owned enterprises (SOEs) are liable to the corporate income tax. This is very different to most other economies where SOE tends to dominate the not-for-profit economy and pays no corporate income tax. Government ownership also varies between the central government and local government in addition to state asset management bureaus. This provides a rich institutional background to examining the corporate income tax. Design/methodology/approach A panel data analysis approach is used to examine relationship between ownership structure and effective tax rates of all public firms in China from 1999 to 2009. Findings The authors report that effective tax rates do appear to vary across the ownership types, but that SOEs pay a statistically higher effective tax rate than to non-state-owned. In addition, local government owned SOE pay higher effective tax rates than central government and SAMB owned SOE. The authors also investigate Zimmerman’s (1983) political cost hypothesis. Unfortunately, these results are econometrically fragile with the statistical significance of those results varying by empirical technique. Originality/value This paper provides insight into government ownership and taxation in China.

Trends of centre–state relations in India under the neo-liberal regime

2018 ◽  
Vol 5 (1) ◽  
pp. 83-91 ◽  
Author(s):  
Prabhat Patnaik
Keyword(s):  
Interest Rates ◽  
State Government ◽  
Central Government ◽  
The State ◽  
State Governments ◽  
Tax Rates ◽  
Economic Role ◽  
Goods And Services ◽  
Role Of The State ◽  
Financial Strength

India had been envisioned as a federation by our Constitution makers, and so states were assigned some important subjects in which the centre could have no or only limited authority. Thus state governments run by opposition parties could pursue policies different from those of the Central Government in a number of ways. But since the onset of economic ‘liberalisation’ beginning with the late 1980s the financial strength and economic role of the state governments have been constantly undermined. This came, first, through the raising of interest rates to attract foreign finance capital, which created budgetary crises for the states since they fell under heavy debt simply to pay interest on existing debt. Neo-liberal policies were then imposed on them by Finance Commissions which made compliance with these compulsory for centre’s financial assistance. More recently the states’ powers have been further curtailed by the Goods and Services Tax, which has deprived the state government of the power to determine tax rates on goods produced within the states. Another means to the same end has been the centre’s trade agreements with foreign countries, with no reference made to states whose products thereby may be priced out of the market. The demonetisation of 2016, which impacted so destructively on employment and the cooperative sector in the states, was also undertaken by the centre without any reference to the states.

scholarly journals Does Cutting the Tax Rate to Zero Induce Behavior Different from Other Tax Cuts? Evidence from Pakistan

2020 ◽  
Vol 102 (3) ◽  
pp. 426-441 ◽  
Author(s):  
Mazhar Waseem
Keyword(s):  
Low Income ◽  
Tax Evasion ◽  
Tax Reforms ◽  
Middle Income ◽  
Tax Rate ◽  
Taxable Income ◽  
Administrative Records ◽  
The Difference ◽  
Wage Earners ◽  
Tax Cuts

Using a series of Pakistani tax reforms and administrative records, I document that taxable income responses induced by to-zero tax cuts are orders of magnitude larger than ones induced by similar-sized other cuts. This finding is remarkably robust to alternative specifications and holds for both the self-employed and wage earners. I explore salience, selective enforcement, and discontinuous evasion costs as explanations of the observed behavior. I find that the data favor the last explanation. The difference between the two sets of responses is primarily driven by a large, discrete tax evasion response, which is included in the former but not in the latter behavior. I estimate the difference as a lower bound on tax evasion, showing that at least 70% of the income of low- and middle-income self-employed and 1% of low-income wage earners goes unreported.

scholarly journals The Impact of GST on Indian Economy

2021 ◽  
Vol 9 (11) ◽  
pp. 1419-1421
Author(s):  
Rohan Navandhar
Keyword(s):  
Central Government ◽  
Negative Impact ◽  
Positive Impact ◽  
Task Force ◽  
Current System ◽  
Tax Avoidance ◽  
Value Added ◽  
Indian Economy ◽  
Goods And Services ◽  
The Impact

Abstract: In India, the idea of GST was contemplated in 2004 by the Task Force on implementation of the Fiscal Responsibility and Budget Management Act, 2003, named Kelkar Committee. The Kelkar Committee was convinced that a dual GST system shall be able to tax almost all the goods and services and the Indian economy shall be able to have wider market of tax base, improve revenue collection through levying and collection of indirect tax and more pragmatic approach of efficient resource allocation. Under the Goods and Service Tax , every person is be liable to pay tax on output and shall be entitled to enjoy credit on input tax paid and tax shall be only on the amount of value added. GST is a single national uniform tax levied across India on all goods and services. In GST, all Indirect taxes such as excise duty, central sales tax (CST)and value- added tax (VAT) etc. will be subsumed under a single regime. Introduction of The Goods and Services Tax (GST) expected as a significant step towards a comprehensive indirect tax reform in the country, which would lead India for its economic growth. The Proposed study is designed to know the impact on GST on Indian Economy with the Help of Its individual effect on different sectors. Under GST, goods and services fall under five tax categories: 0 per cent, 5 per cent, 12 per cent, 18 per cent and 28 per cent. For corporates, the elimination of multiple taxes will improve the ease of doing business. And for consumers, the biggest advantage would be in terms of a reduction in the overall tax burden on goods. "Inflation will come down, tax avoidance will be difficult, India's GDP will be benefitted and extra resources will be used for welfare of poor and weaker section. The Lok Sabha has finally Passed the Goods and Services Tax Bill and it is expected to have a significant impact on every industry and every consumer. Apart from filling the loopholes of the current system, it is also aimed at boosting the Indian economy. Keywords: GST, Indian Economy, Positive Impact , Negative Impact, Central Government, State Government

scholarly journals Tax System in India-Evolution and Present Structure

2015 ◽  
Vol 2 (1) ◽  
Author(s):  
Ms. Neha Nainwal
Keyword(s):  
Tax Evasion ◽  
Structural Changes ◽  
Tax Structure ◽  
Tax Reforms ◽  
Public Authorities ◽  
Tax System ◽  
Direct Taxation ◽  
Excise Duty ◽  
Goods And Services ◽  
Indirect Taxes

<bold>Main findings of the book</bold> The Indian tax system has undergone major structural changes since Independence in 1947. It has become comprehensive and complicated over the years. It has successfully mobilised resources to finance developmental, welfare and administrative activities of public authorities. Besides being the main source of revenue, both for the Central and State Governments, it is an effective instrument to realise various socio-economic objectives of national policies. However, the tax system has been relying heavily on indirect taxes and suffering extensively from fiscal malady called tax evasion. Restructuring of the tax system has constituted a major component of fiscal reforms initiated since 1991. The main focus of the tax reforms has been on simplification and rationalization of both direct and indirect taxes with the objective of augmenting revenues and removing anomalies in the tax structure. Tax reforms in recent years have brought the tax system much closer to international tax practices. Tax reforms are a part of the package to liberalise and globalise the Indian economy. The post-1991 period has witnessed a sharp decline in the rates of income tax, excise duty and customs tariff. The theory that high rates of duty lead to higher revenue collection has been discarded in favour of lower rates with fewer exemptions and concessions. The strategy in respect of direct taxation is to minimise distortions in tax structure by expanding the tax base and moderating tax rates on the one hand and improving the efficiency of tax administration and increasing the deterrence level on the other, so as to encourage voluntary compliance. The strategy in respect of indirect taxes is to move towards a fully integrated goods and services tax (GST).

scholarly journals Is NY's Supply-side Experiment Working? A Preliminary Analysis using County Unemployment Rates

2018 ◽  
Vol 10 (3) ◽  
pp. 245-266
Author(s):  
Lynn B. Snarr ◽  
Hal Snarr ◽  
Dan Friesner
Keyword(s):  
New York ◽  
The State ◽  
Tax Rates ◽  
Free Enterprise ◽  
Corporate Tax ◽  
Tax Reforms ◽  
Tax Rate ◽  
Start Up ◽  
Level Data ◽  
Business Tax

The State of New York recently enacted business tax reforms. The first legislative act launched the START-UP NY program in 2014. It created tax free enterprise zones throughout the state to incentivize business incubation within, or relocation of existing firms to, the State of New York. In that same year, the state lowered its corporate tax rate state-wide from 7.1% to 6.5% in 2016. We use a difference-in-differences (DID) methodology, evaluated using county-level data, to empirically test whether New York’s recent business tax reforms significantly reduce unemployment, beyond what would exist in the absence of the reforms. We fail to find significant evidence that START-UP NY affects unemployment during the period studied, 2014-2017.  We do, however, find evidence suggesting that New York lowering its corporate tax rates in 2016 is associated with a large reduction in unemployment (by approximately 90,000 jobs) in 2016 and a smaller reduction (by approximately 25,000 jobs) in 2017.

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