Page 48 - Banking Finance November 2017

ARTICLE

INDIA'S MIDNIGHT

'TRYST' - GST ROLLED

OUT TO MODERNIZE

THE MUDDLED UP

TAX STRUCTURE

T here's no denying that yield from indirect taxes whole system leads to double taxation. This system directly

is the bedrock of government's revenue. Indirect
hits the final consumer who has to bear the whole burden
and this burden is largely bore by the poor people who spend
taxation consists of all those taxes which are
indirectly collected form the consumers on the
consumption of goods and services by union and a major portion of their income on the consumption of goods.
To make the consumer somewhat free and to release them
state government through intermediaries at different from the load of all taxes, the govt. of India has preluded
stages. the concept of GST, i.e. Goods and Services Tax. GST has
been launched as the One hundred and first Amendment of
In the case of indirect tax, the liabilities of the tax can be Indian Constitution at the midnight of June 30- July 1, 2017
passed on to someone else. This means that when the whole applicable to the whole of India. Central Hall of Parliament
seller pays VAT on his sale, he can pass on the liabilities to became the witness of the Mega launch of GST rolled out
retailer and when retailer pays the tax, he can pass on the by the President and Prime Minister of India.
liability to customer. So, in effect, customer pays the price
of the item as well as the VAT out various levels on it. This Applauded and Glorified by the Government, GST came into
existence as the most awaited and conscientious tax reju-
venation post 17 years of hectic arguments (since 2000
About the author when it was first proposed) among the center and the states.

Being an indirect tax, GST is going to replace the plethora
Tabassum Saifi of all indirect taxes which were previously imposed by Union
Commerce Lecturer and State Governments. GST is the landmark amendment
Sri Krishna Institute of Management
and Science in the history of Indian taxation System. Since Independence
Chandausi and the amendment is expected to bump up GDP by a per-
centage point or even more.

48 | 2017 | NOVEMBER | BANKING FINANCE

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