Impact Of Goods And Services Tax Laws On Indian Economy Issues And Challenges

Abstract

In the globe, the role of taxation is playing a crucial and significant role in the economic development and public welfare policies to obtain the goal of any country of Government. The object of rule in the public has been changed by the passage of time and at present; the main object of the Government of every country is the economic development and provide the basic need to the people of the inhabitants. India is a democratic country, it is natural phenomena that the object of the Government has also changed for economic development and welfare of the public in the country. The concept of tax has not been new. It is an old as the World old. The tax is known by the different name in the different era of the World. The classification of the tax can be two type i.e. direct tax and indirect tax. Both are equally important for the economy of the country. Being a democratic country and nature of the Constitution of the country, indirect tax can be imposed by the Center and State Governments. At the time of independence, the form of tax has been changed many times and new tax has been imposed by the both Governments. The indirect tax is primarily deal with the goods and services. The tax on goods was imposed before the independence of the country and tax on services has been enacted in the year 1994 in form of Service Tax. Before the year 2017, there was mainly two tax regime one deal with the tax on goods and other deal with the tax on services. The tax on goods was enacted and regulated by the State Government and the other service tax was regulated and controlled by the Central Government. In our country, since independence, the process of reform of taxation has been initiated by the Center and State Government.