The Global Implications of the Goods and Services Tax and its Indian Scenario

The Goods and Services Tax (GST) is a tax regime used by 160 countries around the world to avoid tax cascading in the economy. India implemented GST in 2017, whereas many other countries had implemented GST in their tax systems for many years prior. France was the first country to implement a unified tax system in 1954, followed by Germany, Italy, Japan, and South Korea. GST is one of the most important initiatives undertaken by most countries in order to achieve a structured and developed economy. Goods and Service Tax is a value-added tax levied primarily on goods and services provided or sold for domestic or household consumption. GST generates revenue or income for the government during the economic growth process. The portion of GST accumulated or collected from consumers by businesses or sellers of goods and forwarded to the government. Goods and Services Tax is also known as Value Added Tax in some countries.