expect tolt.

An attempt is made in this paper to study the concept of goods and service tax and its
impact on Indian economy. The study also aims to know the advantages and challenges of GST in Indian
scenario

his paper highlights the concept of GST. It explains the features of the suggested GST. It also throws
light on benefits and limitations of implementing GST in India

Although there are many hurdles to be crossed before the implementation of GST the
Central government reiterated its commitment towards the adoption of a flawless GST
for the survival of the Indias economy in the face of increasing international competition
consequent to globalization and liberalization. Despite the various impediments to the
proposed transition, until the time GST is implemented, it would be worthwhile to assess
its positive impacts on the various development areas viz. agriculture, manufacturing
industry, MSME, housing, poverty reduction, employment, price level, EXIM trade, GDP,
government revenue, etc. and this aspect is the subject matter of this paper.
Key words: Value Added Tax, Central Value Added Tax, Flaw less Goods and Services Tax, Gross
domestic Product, Economic Chang
Under the fractured VAT regime, different types of indirect taxes are there. This fractured adoption
of VAT system gives rise to number of problems like Differential tax treatment, movement of goods from a
VAT state to a non-VAT state, Phasing out of CST completely, Incentive & Exemption Schemes, No Uniformity
in tax rates. Prof. Kelkar Committee has proposed a uniform Goods and Service Tax (GST) to do away with the
issues and problems of VAT. Based on Kelkar Committee recommendations the GOI has brought a Bill in 2011
through the Constitution (115th Amendment) (GST) Bill, 2011. However the bill was not passed due to
dissolution of 15th Lok Sabha. Again, Constitution (122nd Amendment) (GST) Bill, 2014 was presented in the
Lok Sabha and this Bill has been passed in the Lok Sabha on May 6, 2015 and referred to a Select Committee
of Rajya Sabhafor examination. NDA government is trying to get assent of Rajyasabha in the present session
of the parliament. The GST will definitely help the Indian economic growth and this unified, integrated tax
system will bring economic unification in India.
Key words: VAT, GST, cascading of taxes, economic unification.