Abstract

The diversification in indirect tax has been transformed into simplified and unified tax which is called as Goods and service tax (GST). It can be consider as one of the biggest tax reform for indirect tax which is done by the 13th Finance Commission, Chairman Dr. Vijay Kelkar. This is done with the aim to improve entire taxation process in tune with international level. There is remarkable change after the implementation of the new tax reform, Good and Service Tax in the respective areas of taxation. Hence, due to such big reform in indirect tax there is a discussion on whether GST is successfully implemented and impact on the economy. There is more transparency due to modernizing of the indirect tax system which will become the show stopper for increase in the GDP in the upcoming years. This is also made for curbing the corruption and tax evasion in from the loopholes of the tax laws. It is also considered as one of the extensive and significant reform in the area of indirect tax since independence. The first part of the paper is attempted to understand the evolution, concept, objective of the GST. The second part of the paper includes the benefits arising from the GST. The third and final part of the paper is to analyze the various issues and challenges of GST.

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