By Piyush Jain, Rajiv Gandhi National University of Law, Punjab.
Goods and Services Tax (GST), which is considered the most significant tax reform since independence, proposes to subsume a majority of the indirect taxes prevailing in India and will change the way business is done. It will bring about a structural change in the current indirect taxation system by propagating an ideal consumption-based indirect tax system. The dual GST proposed to be introduced is expected to expand the tax bases and simplify and harmonize the conception tax systems presently levied at both central and state levels. The Central VAT (CENVAT) levied at present, has a narrow base and multiple rates. It is levied on goods at the production stage, and value added in subsequent stages is not included in the base. (more…)