GST(Goods and Services Tax)

Abstract

This paper reveals us about revenue and genesis of GST in India. One of the major sources of revenue for government is Tax. There are two major types of taxes: direct taxes and indirect taxes. These taxes are levied by central government and state government. The authority to impose a tax comes from the Constitution of India which provides the power to levy various taxes between the Central and the State. An important restriction on this power is Article 265 of the Constitution which states that "No tax shall be levied or collected except by the authority of law". Therefore, each tax levied or collected has to be backed by an accompanying law, passed either by the Parliament or the State Legislature. This paper deals with the taxation system of India, Pre-GST structure, timeline of the GST, what taxes subsumed in it and what are the current rates of GST. With an aim of simplifying tax structure in India, GST proposes to remove the geographical obstacles for trading, and transforming the entire nation to ‘One Common Market Place.’ While it is believed that the ‘One Nation- One Tax’ regime is paving path towards a better economy of our country.