Impact of GST on Service Sectors

International Journal of Research and Scientific Innovation (IJRSI) | Volume VI, Issue V, May 2019 | ISSN 2321–2705

Impact of GST on Service Sectors

Dr. Noor Afza¹, Prof. Manjunatha BV²

¹Dean and Chairman, Department of Business Management, Tumkur University, Tumkur, Karnataka, India
²Assistant Professor, Jain University, Karnataka, India

Abstract: GST abbreviation for “Goods and Services Tax”, and is an inclusive indirect tax imposed on the production and consumption of goods and services at the national wide replacing the taxes levied by the state and central governments of India. Globally it was introduced in the year 1954 in France. Across the world more than 150 countries have adopted it. It is one of biggest tax reform. With GST implementation, Indian market will be unified and will lower the business cost in long run. Along with reduced cost it will also help in seamless movement of goods and services across states. The present paper tries understanding impact of GST on different sectors of economy.

Key words: Goods and Service Tax, Impact, service Sector, reform

I. INTRODUCTION

GST is an inclusive tax levied on manufactures, sales and consumption of goods and services at a nation level. “GST is a tax reform in India that has a broad base that initiates the applicability of a proficient and synchronized tax system. GST is concept that has been acknowledged worldwide and more than 140 countries have accepted the same. General rate of GST ranges between 15%- 20% in most of the economies.

II. REVIEW OF LITERATURE

Anand Nayyar and Inderpal Singh, July 17, 2017 – A Comprehensive Analysis of Goods and Services Tax (GST) in India
Thye analysed that The Goods and Services Tax (GST), implemented on July 1, 2017, is regarded as a major taxation reform till date implemented in India since independence in 1947. GST was planned to be implemented in April 2010, but was postponed due to political issues and conflicting interest of stakeholders. They said that primary objective behind development of GST is to subsume all sorts of indirect taxes in India like Central Excise Tax, VAT/Sales Tax, Service tax, etc. and implement one taxation system in India. The GST based taxation system brings more transparency in taxation system and increases GDP rate from 1% to 2% and reduces tax theft and corruption in country. The paper highlighted the background of the taxation system, the GST concept along with significant working, comparison of Indian GST taxation system rates with other world economies, and also presented in-depth coverage regarding advantages to various sectors of the Indian economy after levising GST and outlined some challenges of GST implementation.

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