Open Access Open Access  Restricted Access Subscription Access

The Existing Commodity Sales Tax System and the Proposed Indian GST: An Analysis Using Mclure's Ideal Sales Tax System


Affiliations
1 Junior Research Fellow, Haryana School of Business, Guru Jambheshwar University of Science and Technology, Hisar - 125 001, India
2 Professor, Haryana School of Business, Guru Jambheshwar University of Science and Technology, Hisar - 125 001, Haryana, India

   Subscribe/Renew Journal


A sound tax system plays a vital role in the development of public finances of any country. So, each country tries to achieve it with the help of various reforms, which take place according to its economic, political, and financial considerations. The GST (Goods and Services Tax) has been proposed for implementation in India. Since its announcement, it has attracted a great debate on why we need GST if we have CENVAT (Central Value Added Tax) and State VAT (Value Added Tax). This paper presents an analysis of both - the existing commodity sales tax system and the proposed GST with the help of Mclure's ideal sales tax system and finds that the proposed GST fulfills most of the principles of Mclure's ideal sales tax system in comparison to the existing commodity sales tax system, which lacks all principles. The findings from this study favor the implementation of the proposed GST for India.

Keywords

Taxation, Tax Reforms, Sales Tax, VAT, Goods and Services Tax (GST)

H20, H71, K35

Paper Submission Date : December 2, 2013 ; Paper sent back for Revision : January 10, 2014 ; Paper Acceptance Date : February 5, 2014.

User
Subscription Login to verify subscription
Notifications
Font Size

Abstract Views: 169

PDF Views: 0




  • The Existing Commodity Sales Tax System and the Proposed Indian GST: An Analysis Using Mclure's Ideal Sales Tax System

Abstract Views: 169  |  PDF Views: 0

Authors

Anushuya
Junior Research Fellow, Haryana School of Business, Guru Jambheshwar University of Science and Technology, Hisar - 125 001, India
Karam Pal Narwal
Professor, Haryana School of Business, Guru Jambheshwar University of Science and Technology, Hisar - 125 001, Haryana, India

Abstract


A sound tax system plays a vital role in the development of public finances of any country. So, each country tries to achieve it with the help of various reforms, which take place according to its economic, political, and financial considerations. The GST (Goods and Services Tax) has been proposed for implementation in India. Since its announcement, it has attracted a great debate on why we need GST if we have CENVAT (Central Value Added Tax) and State VAT (Value Added Tax). This paper presents an analysis of both - the existing commodity sales tax system and the proposed GST with the help of Mclure's ideal sales tax system and finds that the proposed GST fulfills most of the principles of Mclure's ideal sales tax system in comparison to the existing commodity sales tax system, which lacks all principles. The findings from this study favor the implementation of the proposed GST for India.

Keywords


Taxation, Tax Reforms, Sales Tax, VAT, Goods and Services Tax (GST)

H20, H71, K35

Paper Submission Date : December 2, 2013 ; Paper sent back for Revision : January 10, 2014 ; Paper Acceptance Date : February 5, 2014.




DOI: https://doi.org/10.17010/aijer%2F2014%2Fv3i2%2F55970