GST-Paradigm Shift in Indirect Taxes

Goods and Services Tax (GST) is a proposed regime of indirect taxation in India subsuming most of the existing taxes into single system of taxation. It was introduced as The Constitution (One Hundred and First Amendment) Act 2016. The Chairman of GST Council is Union Finance Minister which is currently Mr. Arun Jaitley. The introduction of Goods and Services Tax (GST) would be a significant step in the reform of indirect taxation in India. Amalgamating several Central and State taxes into a single tax would mitigate cascading or double taxation, facilitating a common national market. The simplicity of the tax should lead to easier administration and enforcement. From the consumer point of view, the biggest advantage would be in terms of a reduction in the overall tax burden on goods, which is currently estimated at 25%-30%.