Goods & Services Tax: Role in Developing the Economy of the Country

Abstract

The Government of India took a bold step in introducing the goods & services tax in the year 2017. Initially it was not so easy but the Government advised the business houses to adjust with the new tax system. This tax is a destination-based tax and at the end, the same will be chargeable on the consumers. The new tax regime seeks to eliminate the effect of double taxation because it is leviable on the value addition only. In the system, both the Central Government and the State Governments have the authority to levy and collect taxes. It promotes greater harmonisation and uniformity of the tax structure across the States and promotes economic integration. It is a dual structure tax system i.e., CGST & SGST and Integrated GST which is meant for inter-state supplies of goods / services & imports. The collected tax will be apportioned to the destination State. It has removed the complex tax system in our country. The role of cost accountants is very important in this tax regime.