Goods and Service Tax (GST) – A Big Taxation Reform

The Indian economy is one of the fastest growing economy witnessed another reform in the field of indirect taxation. The present structure of indirect tax lacks behind in various terms such as double taxation effects, lack of uniformity in rates and administration. Hence, by removing cascading effects of taxes and it will provide a common area for goods and services all over the world. India is going to introduce Goods and Services Tax (GST). Central and the State Government is going to propose an Indirect Tax reform, both having simultaneous taxation power to impose tax on supply of goods and services. This paper analyses the forms of taxes in India, the need for GST, historical background of GST, GST model GST also known as the Goods and Services Tax is defined as the huge indirect tax structure that is designed to support the economy and will improve the overall growth of the economy. It will applies on whole of the India which had replaced different types of taxes imposed by the Central and State governments. Introduction of the GST is The Constitution’s (One hundred and first Amendments) Act 2017, after the Constitution 122nd Amendment Bill. GST council governed the GST and Finance Minister of India is the chairman of this Council. The process of legislation formation took 17 years. GST was introduced in the year 2000. Tax rates under GST are: - 0% is the Lowest and 28% is the Highest rate. GST is implemented by more than 150 countries.