GST - AN EFFECTIVE APPROACH (Pages 11-21) by Dr. Suhasini Parashar in THE INTERNATIONAL MANAGER / ISSN: 2348-9413 (Online); 2348-9405 (Print)

Taxes are mainly used to finance the expenses incurred by government to manage an economy, which include health care, education, social welfare, defense, payment of loans and deficit. GST (Good and service tax) is expected to introduce a simple, efficient, and uniform indirect tax structure in India as a comprehensive tax that may be levied on the supply of all goods and services, using the same tax base, help to contribute in revenue. GST implemented makes the belief stronger that recognized as a landmark in the development of the history of taxation in India. As an effective tool for monetary policy management, implemented successfully due to nation-wide same tax rate. A single rate would help maintain simplicity and transparency by treating all goods and services as equal . GST provided relief to producers and consumers by providing wide and comprehensive coverage of input tax credit compensation. Efficient formulation of GST has led to resource and revenue gain for both Centre and States. The focus also remains on GST structure. The previous existing multi-staged tax structure charged from the State and Central governments separately led to cascading effect of taxes. There were taxes at different rates and at multiple points. The Centre levied taxes like Income tax, Service tax, Central Sales tax, Excise Duty and Security ,Transaction tax while at the State level were VAT or Sales tax, Octopi , State Excise, Property tax, Entry tax, etc. These taxes led to complexity and increased tax burden on the Indian products affecting the prices, sales in the domestic as well as international markets and services and impact on Indian economy and consumer ‘s interest . Keywords: Cascading Effect, Comprehensive, Tax, Revenue etc.