An Overview of the Goods and Services Tax Journey in India: An Empirical Study

Abstract;

GST is a single national uniform tax levied across India on all goods and services. In GST, all
indirect taxes such as excise duty, central sales tax (CST), value-added tax (VAT), etc. will be
subsumed under a single regime. The introduction of the Goods and Services Tax (GST) is
expected to be a significant step towards comprehensive indirect tax reform in the country,
which would lead to India's economic growth. It consolidates all indirect taxes from states and
central governments, creating a unified national market. This paper provides an overview of the
GST concept, outlines its features, and traces its journey in India. The study is exploratory in
nature, and both primary and secondary data will be used for the study. The study tries to find the
perceptions of people regarding GST. The data will also be collected from different journals and
periodicals, newspapers, and the Internet. This paper aims to provide insights into the concept,
model, advantages, disadvantages, and impact of GST on the Indian economy. This paper also
makes recommendations and draws a comprehensive conclusion. It also addresses the challenges
faced during its execution in the current scenario.

Literature Review;

1. According to Lourdunathan F et al. (2017), the Goods and Services Tax (GST)
implemented by the Indian government on April 1, 2017 has evoked a varied response,
with manufacturers, traders, and society expressing mixed opinions and arguments.
While news organisations worldwide have highlighted the bill as a unifying achievement
for the country, there are also implicit views and concerns. The passage of the Goods and
Services Tax Bill in the Rajya Sabha has positioned India at the forefront of the global
economy. International newspapers have shared diverse perspectives on how the GST
Bill signals a new era of economic reform in the country. This paper delves into the
background, prospects, and implementation challenges of GST in India, ultimately
drawing conclusions on its impact.

2. Research by Dr. R. Rupa (2017) indicated that, traditionally, India heavily relied on
indirect taxes for revenue until the tax reforms of the nineties. The justification was the
large population's economic constraints, limiting the expansion of direct taxes. However,
the existing system of indirect taxation in India distorts production, hampering economic
growth. The multitude of taxes, imposed by both the central and state governments, adds
complexity for taxpayers. To simplify and reduce the burden, the Goods and Service Tax
 (GST) is proposed as a solution. This paper explores the GST concept, detailing its
advantages, disadvantages, and international comparisons.

3. In this paper, Anand Nayyar et al. (2018), based on the study conducted by him, state that
the GST was implemented on July 1, 2017, and that the GST stands out as India's most
significant tax reform since independence in 1947. Initially, it was planned for April
2010, but due to political issues and conflicting interests, it caused a delay. The GST aims
to consolidate all indirect taxes, including central excise tax, VAT/sales tax, and service
tax, into a unified taxation system. This approach enhances transparency, boosts GDP by
1-2%, and curbs tax evasion and corruption. This paper covers the background, concept,
and operational aspects of GST, compares Indian GST rates globally, and outlines its
positive impact on various sectors while addressing implementation challenges.

4. Roy Arunabha (2017) found out that the Goods and Services Tax (GST) stands as a
pivotal tax reform in post-independence India. This proposed regime aims to establish a
tax-neutral national market by absorbing prevalent indirect taxes. By eliminating tax
cascading and multiple levies, GST will simplify the existing diverse indirect tax system.
The paper discusses the drawbacks of the then indirect tax structure, traces the evolution
of GST in India, and introduces the proposed - concurrent GST dualAdditionally, it
explores the varied benefits of GST for different stakeholders. To conclude, the paper
addresses concerns, provides recommendations, and draws a comprehensive conclusion.

5. Research by Subhamoy Banik et al. (2018) stated that the concept of GST, or Goods and
Services Tax, is a major tax reform in India, streamlining the country's tax system. It
replaces multiple taxes with a single, unified tax, connecting all sectors of the economy
for enhanced growth. Over 160 countries, including France, have already adopted GST.
Initially proposed in 1999 by Atal Bihari Vajpayee, it faced delays but gained momentum
with a constitutional amendment bill passed in May 2016. Despite a planned launch in
2017, there has been significant opposition. This paper provides an overview of GST, its
benefits, and features, and explores the challenges faced during its implementation in
India.
6. According to Madhu Bala (2018) the traditional tax structure in India heavily relied on
indirect taxes, with revenue predominantly sourced from them until the tax reforms of the
nineties. The argument for this reliance was that most of the Indian population was poor,
limiting the expansion of direct taxes. However, the previous system of indirect taxation
in India was marked by cascading and distorting taxes on goods and services, hindering
productivity and impeding economic growth. The present system involves numerous
taxes imposed by both the central and state governments, creating complexity. To address
this and reduce the taxpayer burden, a simplified approach is needed, such as the
implementation of the Goods and Service Tax (GST). This paper provided insights into
the concept, model, advantages, disadvantages, and impact of GST on the Indian
economy.

7. Based on the study conducted by Namita Mishra, it was stated that GST is a unified
national tax applicable throughout India on all goods and services. This tax structure
consolidates various indirect taxes like excise duty, central sales tax (CST), and value-
added tax (VAT) into a single system. The introduction of Goods and Services Tax
(GST) is anticipated as a significant move towards comprehensive indirect tax reform in
the country and is expected to contribute to India's economic growth. The proposed study
aims to assess the impact of GST on the Indian economy, focusing on its effects on
different sectors.

8. According to Prof.Pooja S. Kawle and Prof.Yogesh L. Aher (2017), the Goods and
Services Tax (GST) is a comprehensive tax structure with a significant impact when
implemented nationally. It represents a crucial step in the country's development,
fostering integration between state and national economies to enhance overall growth.
Currently, businesses face the challenge of multiple taxes, increasing product costs, and
affecting profitability. The existing complex taxation system hinders economic growth.
The introduction of GST eliminates these hurdles by establishing a single tax system for
both goods and services, marking a noteworthy development in comprehensive indirect
taxation reform. With a uniform rate for goods and services, GST promotes a business-
friendly environment, leading to reduced prices and effective control of inflation rates.

9. Research by Manisha Shinde (2019) indicated that the Indian economy has grown
rapidly, and taxes are a crucial income source for the government. The introduction of the
Goods and Services Tax (GST) aligns with the goal of having a modern tax system, as
 recommended by Dr. Vijay Kelkar. This new tax structure aims to promote ease of doing
business, reduce tax evasion, and drive economic prosperity. GST is a significant reform,
replacing taxes like value-added tax, excise duty, service tax, and sales tax. It applies to
the manufacturing, sale, and consumption of goods and services, with the expectation of
economically uniting the country. This paper explores the background, objectives, and
impact of GST on various aspects of the Indian economy, emphasising its benefits. In
conclusion, it examines the overall effect of GST.

10. In this paper, Dr. Rhytheema Dulloo et al. 2022), based on a study conducted by him, the
introduction of GST is a big step in changing how taxes work in India. It creates a single
national market by combining all indirect taxes into one system. Unlike before, where
different taxes were applied at various stages of making and selling a product, GST
follows a 'ONE COUNTRY, ONE TAX' approach, making taxation more transparent.
This change is expected to remove economic imbalances, establish a fair tax structure,
and bring benefits not seen with the previous VAT system, contributing to economic
development. The 'Make in India' initiative is also getting a boost from GST. This paper
explores the history of India's indirect taxation, explaining the concept of GST, its
features, differences from the old system, how it works, and the benefits it brings. The
study also looks at how GST impacts the Indian economy.

11. ("Maruthi M. V," 2020) found out that the GST was implemented on July 1, 2017. The
Goods and Services Tax (GST) is a major tax reform in India, considered the most
significant since independence in 1947. Initially planned for April 2010, political issues
caused a delay. GST is a comprehensive tax system that combines all indirect taxes from
states and central governments, creating a unified national market. The main aim is to
replace various indirect taxes, simplify the system, and boost transparency. GST's
implementation is expected to increase GDP by 1-2%, reduce tax theft, and curb
corruption. The paper covers the background, concept, workings, compares Indian GST
rates globally, and discusses advantages to various sectors of the Indian economy, along
with challenges in GST implementation.

12. Research by Ajay Shukla (2017) stated that India is undergoing a significant tax reform
with the introduction of the Goods and Services Tax (GST), impacting consumers,
individuals, businesses, and the government. This study explores the history and planned
execution of GST in India, comparing it with other major economies globally. We also
 investigate potential barriers and challenges that may arise during the initial phase of
GST implementation.

13. According to Teena Shivnani et al. (2017), GST is a crucial tax reform in India that was
initially planned for April 2010 but faced delays due to governmental issues and
conflicting interests. It has recently been implemented, serving as a comprehensive tax
system that consolidates all indirect taxes from states and central governments, creating a
unified national market. The current taxation system is considered burdensome, complex,
and unfavorable. GST is expected to streamline the existing indirect tax system and play
a significant role in India's economic growth. This paper provides an overview of the
GST concept, outlines its features, and traces its journey in India. It also highlights the
advantages of GST and addresses the challenges faced during its execution in the current
scenario.

14. Research by Dr. Dimpal Vij (2018) stated that the much-anticipated Goods and Services
Tax (GST), introduced in India on July 1, 2017, was aimed at unifying the nation's 1.3
billion citizens into a single market. This single indirect tax replaced various taxes at both
the central and state levels, including VAT, central excise duty, CST, and service tax.
The GST was expected to simplify taxation, eliminate cascading effects, reduce tax
evasion and corruption, and enhance transparency in tax collection, ultimately boosting
government revenue and the country's GDP. However, after nine months of
implementation and government modifications, challenges persist. This paper explores
why GST has not met its objectives and suggests a way forward to make GST a positive
force for the country's growth.

15. In this paper, Ranjan Kshetrimayum et al. (2019) point out that, in the era of
globalisation, India is aligning itself with indirect tax reforms to accelerate economic
growth, increase national tax revenue, attract foreign investment, and create a business-
friendly environment. The implementation of these reforms, particularly the Goods and
Services Tax (GST), took 17 years since its initial proposal in 2000. By consolidating
various central and state indirect taxes, it establishes a uniform tax system across the
entire country, unifying the market. The expected benefits span the national economy,
goods and service producers, middlemen in the distribution chain, and ultimately,
consumers. However, successful implementation faces challenges requiring cooperation
from all economic sectors, systematic monitoring, and periodic reviews to prevent
adverse impacts on the overall economy.