The Future Of Indirect Taxation In India: A Research Analysis

Ayush Bhardwaj, Advocate at Bhardwaj & Associates, New Delhi. Alumni of Maharashtra National Law University Aurangabad.

ABSTRACT

Indirect taxation plays a pivotal role in India's fiscal system, contributing significantly to government revenues and policy formulation at both central and state levels. Over the years, India's indirect taxation system has undergone numerous reforms to enhance its efficiency and performance. The most notable and recent reform in this domain is the Goods and Services Tax (GST), a comprehensive and uniform indirect tax that revolutionised the taxation landscape across the country. GST brought about numerous advantages, including the simplification and rationalisation of the tax structure, improved compliance, expansion of the tax base, and enhanced economic integration and efficiency.

This research paper provides a comprehensive overview and analysis of India's indirect taxation system, with a particular focus on the implementation and impact of GST. The paper covers various facets, starting with an introduction to indirect taxation in India and tracing its historical evolution. It delves into the current indirect taxation framework, highlighting key changes that have occurred over the years. It also examines the profound influence of GST on the indirect taxation system.

The paper further discusses anticipated trends in India's indirect taxation system and identifies the critical challenges it faces, such as striking a balance between revenue adequacy and economic growth, addressing regional disparities, enhancing taxpayer education and awareness, and improving the system's efficiency and effectiveness in an ever-changing economic and social environment.

Additionally, the study explores the potential impact of indirect taxation on India's economy and suggests a series of reforms to address existing challenges and ensure a more effective taxation system. The research draws on a wide array of sources, including official reports, academic literature, and news articles. In conclusion, this paper offers a comprehensive analysis of India's indirect taxation system, emphasising the impact of GST and the challenges it confronts. It provides valuable insights and recommendations for the future of indirect taxation in India, contributing to the ongoing discourse on tax policy and administration in the country.