GST Model for India

Abstract

Goods and Service tax Bill, the forth coming biggest and unprecedented reform in the taxation history of India boosts the country's GDP by 1% - 2% on implementation and helps in improving India's ease of doing business index ranking in the world which presently stands at 130. Goods and Services Tax would be a comprehensive indirect tax on manufacture, sale and consumption of goods and services throughout India to replace the various indirect taxes levied by the Central and State governments. Post implementation, the majority of Central and State indirect taxes would be subsumed in GST and the existing indirect taxes takes the form of CGST, SGST and IGST with few exceptions under the proposed concurrent dual GST model. With destination based and value added taxation principle, GST paves the way for creation of common market in India by eliminating hindrance in the present indirect taxation system and provides respite to business houses from the requirement of multiple compliances under various states statutes within India.