Adv. Vanya Diwan, Women Scientist at TIFAC under the Department of Science and Technology
ABSTRACT
GST was envisaged on the principle of “one-nation-one-market-one-tax”, to simplify the taxation structure and historically sifted to “consumption-based taxation”. A historic step in federal finance was the subsuming of multiplicity of taxes including VAT, service tax, CST, entertainment tax, Octroi tax amongst others, levied at differential rates by Union and State Governments within its ambit. A comprehensive levy, for the first time encompassing both goods and services at the same rates with benefit of input tax credit, removing the cascading effect of tax on tax. The jurisprudential basis is to make a complex balance founded upon socio-economic complexities that permeates a diverse society like India. However, the implementation of such a historic taxation reform has not been without its pitfalls.
Keywords: Goods and Services Tax, GST Council, GSTN.
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