Tax is revenue source to the government of any country in world. In India it is major revenue source to government. It is levied on goods and services produced in the country. The tax system in the country before GST includes Central Excise tax, Service Tax, and state value added tax and some other taxes levied by both central and state governments. Government of India has taken initiative decision for implementation of GOODS AND SERVICES TAX ACT-2017. This act was came into force on July 01,2017. It replaces the numerous taxes like VAT. Service Tax, Excise tax and more, and it the eliminated cascading of taxes. 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, questions related to how is this reform going to be any better than the earlier tax transformations India has seen over the past years (VAT-Service Tax-Excise), is a matter of concern.
Kathula Yadagiri (Wed,) studied this question.