Vol. 3, Issue 12, Part E (2017)

Abstract
GST stands for “Goods and Services Tax”, and is proposed to be a comprehensive indirect tax levy on manufacture, sale and consumption of goods as well as services at the national level. GST is charged on the value or selling price of the products. GST is intended to include all these taxes into one tax with seamless ITC and charged on both goods and services. Thus, excise duty, special additional duty, service tax, VAT to name a few will get repealed and will be added into GST. For this, GST will have 3 parts – CGST, SGST and IGST. The central taxes like excise duty will be subsumed into CGST and state taxes like VAT into SGST. For the introduction of GST in the above form, the Government needs to get the Constitution Amendment Bill passed so that the proposed objective of subsuming all taxes and allowing states to tax subjects in Union list and vice versa is achieved. Without these powers it is not legally possible to move towards GST. This will be one of the biggest taxation reforms that will take place in India. The basic idea is to create a single, cooperative and undivided Indian market to make the economy stronger and powerful.