India being a democratic and republic country, has witnessed the biggest indirect tax reform after much exploration, GST bill roll out on 1 April 2017. The concept of this reform is for a unified country-wide tax reform system. Enterprises particularly SMEs are caught in a state of instability. Several taxes such s excise, service tax etc., have been subsumed with a single tax structure. it is the responsibilities of both centre and state government to shoulder the important responsibility to cater the needs of the people and the nation as a whole. The main basis of income to the government is through levy of taxes. To meet the so called socio-economic needs and economic growth, taxes are considered as a main source of revenue for the government. As per Wikipedia “A tax is a mandatory financial charge or some other type of levy imposed upon tax payer by the government in order to fund various public expenditure” it is said that tax payment is mandatory, failure to pay such taxes will be punishable under the law. The Indian tax system is classified as direct and indirect tax. The indirect taxes are levied on purchase, sale, and manufacture of goods and provision of service. The indirect tax on goods and services increases its price, this can lead to inflationary trend. Contribution of indirect taxes to total tax revenue is more than 50% in India, therefore, indirect tax is considered as a major source of tax revenue for the government, which in turn is one of source for GDP growth. Though indirect tax is a major source of revenue, it had lot of hassles. To overcome the major issues of indirect tax system the government of India subsumed most of the indirect tax which in turn gave birth to the concept called Goods and Service Tax.
