See discussions, stats, and author profiles for this publication at: https://www.researchgate.

net/publication/368463028

GST- AMASTER STROKE OF INDIAN ECONOMY

Article · January 2018

CITATIONS READ

0 1

1 author:

Dhara Abhani
N.J.SONECHA MGT AND TECH INSTITUTE
10 PUBLICATIONS 26 CITATIONS

SEE PROFILE

All content following this page was uploaded by Dhara Abhani on 13 February 2023.

The user has requested enhancement of the downloaded file.

 Journal of Business Economics and Management
Volume 1 Issue 1

GST- A Master Stroke for Indian Economy

Abhani Dhara K.
Assistant Professor
Department of MBA
Shri Narandas Jethalal Sonecha Management & Technical Institute, Veraval Dis- Gir Somnath
Corresponding Authors’ email id: abhanidhara@gmail.com

Abstract
The journey of the Goods and service tax has been far long. It is the
indirect type of tax. It has been divided in five slabs. I.e. 0%, 5%, 12%,
18% and 28%. The tax has been come in to the effect as on 1st July, 2017.
The GST has replaced many of the state and central level taxes. The tag
line for the GST is, “One nation, on tax”. It has replaced many
complicated taxes and simplified the tax structure. A paper is mainly
focuses over the key idea of GST and finally tries to represent those data
which shows that, GST surely prove a master stroke for Indian economy. It
may take some time but surely will have a huge impact on the economy.

Keywords: Goods and Service Tax, CGST, SGST, IGST, economy etc

I. INTRODUCTION consumer. GST is India‟s biggest tax

India is thought to be a home of duties, reform. The real full form of the GST is
particularly backhanded assessments. Goods and Services Tax. But During the
Today in India both focal government and introduction of it, , Shree Narendra Modi
state governments have forced circuitous Ji addresses GST as Good and Simple Tax.
duties on any exchanges of merchandise
and enterprises. GST has been executed in CONCEPT OF GST
India from July first, 2017 by noteworthy There are Two types of taxes. First Direct
P.M. Shri Narendra Modi Ji.GST is the Taxes and another is Indirect taxes. GST is
single tax on the supply of goods and the type of Indirect taxes. The GST act
service. From manufacturer to final was passed in the parliament as on 29th

1 Page 1-8 © MANTECH PUBLICATIONS 2018. All Rights Reserved

 Journal of Business Economics and Management
Volume 1 Issue 1

march, 2017 and finally the act of GST with basic things of day by day utilize
came in to existence as on 1st July , 2017. being kept in the most reduced section of 5
With the GST, India will join choose class percent.
of countries with a merchandise and
administration assess. Truth be told, The GST will be a national deals charge
France was the main nation to execute the that will be collected on utilization of
GST in 1954. From that point forward, products or utilization of administrations.
Germany, Italy, the UK, South Korea, It will supplant 16 current tolls - seven
Japan, Canada and Australia have been focal assessments like extract obligation
among the over twelve countries which and administration expense and nine state
have actualized the GST. China actualized charges like Value Added Tax and
GST in 1994 while Russia did it in 1991. diversion impose - consequently making
Saudi Arabia intends to do it in 2018. India as one market with one duty rate.

The GST Council settled assessment rates Before GST came in to existence the
on 80-90 percent of merchandise and picture of taxes was as follows:
enterprises under the four-piece structure

Figure: 1
(source:WWW.cleartax.in)

2 Page 1-8 © MANTECH PUBLICATIONS 2018. All Rights Reserved

 Journal of Business Economics and Management
Volume 1 Issue 1

HISTORY OF GST

COMPONENTS OF GST 1. CGST: Collected by central

Government. Part of intra- state
transaction.

2. SGST: Collected by state

Government. Part of Intra-state
transaction.

3 Page 1-8 © MANTECH PUBLICATIONS 2018. All Rights Reserved

 Journal of Business Economics and Management
Volume 1 Issue 1

3. IGST: Collected by central LITERATURE REVIEW

Government. Part of Inter-state Lourdunathan F and Xavier P, 2016 in
transaction. their research paper named,” A study on
implementation of goods and services tax
Tax structure before GST introduction: (GST) in India: Prospectus and
challenges” analysed the key challenges
State level taxes for GST. In the introductory part they
mentioned the list of countries which
implemented VAT/GST with their GDP
rate. In later part they mentioned the key
challenges towards GST rate application.
That includes, note ban as well as
demonetization. Further state level issues
may arise which is neglect by central
government. Moreover political factors
have huge impact over the fate of GST. It
will also having impact on cash flow,
working capital cycle etc. they conclude
their study by saying that it is “One nation

Central Level Taxes , One tax market”, if government will

provide enough seminars and continues
workshops over GST to explain the
concept of GST to general public.

Monika Sehrawat and Upasana

Dhanda, December 2015 had published a
paper named “GST in India- Tax
reform”. They had worked mainly to
evaluate the advantages and challenges
over GST as well as they furnished the
paper with the view to furnish the further
study for other researchers. Under the
head Timeline of GST, they explained the

4 Page 1-8 © MANTECH PUBLICATIONS 2018. All Rights Reserved

 Journal of Business Economics and Management
Volume 1 Issue 1

brief history of the same. IGST- effective Research Journal under the head of
logistics, ancillarization, single base „Effects of GST on Indian economy‟. His
computation, export will be zero rate, key objective for the study was to
simple tax structure these are the benefits understand the concept , benefits and
over the implication of GST as per them. features. The methodology for the same
Further with the view to explain the was secondary data. As per him the
challenges they said High revenue natural beneficiary parties are consumers,
rate, Registration threshold limit and many producers, as well as Government.
more may become hurdles.
RESEARCH METHODOLOGY
Akansha Khurana and Aastha Sharma, The present paper tries to throw the light
2016, had worked on research work, “GST on the concept of Goods and Service tax.
in India- A positive reform for indirect tax For the purpose of presenting some facts
reform”. Tax is Latin word „taxare‟, means related with same, secondary data have
to estimate. As per there analysis almost been used over here.
150 countries had adopted GST as in same
way like India i.e. dual mode- CGST and OBJECTIVE OF THE STUDY
SGST. Further they mentioned several I have been researched on this topic to
country wise GST rates. Australia- 10%, fulfill the following objectives.
France-19.6%, Canada-5%, Germany-
19%, Japan-5%, Singapore-7%, Sweden- 1) My primary goal is to create basic
25% and New zeland-15%. Then except idea for the GST concept.
the GST there are major five indirect taxed
listed as Excise duty, Service tax , Sales 2) Further the goal is to know the root
tax- VAT, custom duty and Entertainment of goods and service tax by
tax. Further different area which affects checking out the historical aspects.
because of GST had been explained by
them. By concluding there research work 3) Additionally the goal is also related
they had provide the statement as GST will with knowing the impact of GST
provide relief to producers and consumers. over Indian economy.

Sachin Abda, May 2017 had published

his work in International Education and

5 Page 1-8 © MANTECH PUBLICATIONS 2018. All Rights Reserved

 Journal of Business Economics and Management
Volume 1 Issue 1

IMPACT OF GST ON ECONOMY: The clear conclusion that one can draw is
As per the article published in THE that the value added originating from the
TIMES OF INDIA as on 1st December, rural sector has slowed more sharply than
2017 GST has create a good effect on the urban sector for the first half. Overall
economy. As per Central Statistics Office the source of growth in the first half has
(CSO) economy grew 6.3% in July- been the urban areas
September faster as compare to first
quarter‟s 5.7%. Moreover India has The mining sector also displayed strong
improved its ranking in the World bank‟s signs of a turnaround rising an annual
Ease of Doing business survey. Global 5.5% in the three months to September
ratings agency Moody's Investor Services compared with a decline of 0.7% in the
upgraded the country's sovereign rating previous quarter and contraction of 1.3%
in the second quarter of 2016-17. "While
The farm sector grew 1.7% in the improving modestly, construction stood
September quarter, slower than the out as the slowest growing of the industrial
previous quarter's 2.3% and below the sub-sectors in the second quarter of
4.1% in the second quarter of 2016-17. FY2018.

Table: 1

Tax Products
Rate

0% Milk, Eggs, Curd, Lassi, Unpacked food grains, Un packed

panner, Gur, Unbranded Natural Honey, Fresh Vegetables, Salt, Kajal,
Educations Services, Health Services, Children‟s Drawing & Colouring
Books, Unbranded Atta, Besan, Palmyra Jaggery,

5% Sugar, Tea, Edible Oils, Domestic LPG, Cashew Nuts, Milk Food for
Babies, Fabric, Spices, Coal, Life-saving drugs, Packed Paneer, Coal,
Roasted Coffee Beans, Skimmed Milk Powder, Agarbatti, Coffee (except
instant)

12% Butter, Ghee, Almonds, Fruit Juice, Packed Coconut Water, Computers,
Processed food, Mobiles, Umbrella

6 Page 1-8 © MANTECH PUBLICATIONS 2018. All Rights Reserved

 Journal of Business Economics and Management
Volume 1 Issue 1

18% Hair Oil, Toothpaste, Soap, Pasta, Corn Flakes, Soups, Capital goods,
Industrial Intermediaries, Ice-cream, Toiletries, Computers, Printers

28% Small cars (+1% or 3% cess), Consumer durables such as AC and fridge,
High-end motorcycles (+15% cess), Luxury & sin items like BMWs,
cigarettes and aerated drinks (+15% cess)

(Source: WWW.cleartax.in)

7 Page 1-8 © MANTECH PUBLICATIONS 2018. All Rights Reserved

 Journal of Business Economics and Management
Volume 1 Issue 1

CONCLUSION E-ISSN no. 2454-9916, volume 3,

Though it has been take a long term to issue 5, May 2017
implement the GST in India, still it has get
a success in their objective. Yet many of V. www.economictimes.indiatimes.co
the goods and services has become m
costlier, the GDP growth rate has been
boost up. This shows a good sign for the VI. www.cleartax.in
Indian economy.

REFERENCES
I. Lourdunathan F and Xavier P,
2016, A study on implementation
of Goods and service tax in India:
Prospectus and challenges:
International journal of applied
research:2394-7500: IJAR 2017;
3(1): 626-629

II. Monika Sehrawat and Upasana

Dhanda, December 2015, GST in
India: International journal of
research: vol 3 Issue-12 December,
2015

III. Akansha Khurana and Aastha

Sharma, 2016, GST in India- A
positive tax reform for indirect tax
system: international journal of
advance research (2016):volume 4 ,
Issue 3

IV. Sachin Abda, A paper on effects

of GST on Indian economy:IERJ:

8 Page 1-8 © MANTECH PUBLICATIONS 2018. All Rights Reserved

View publication stats