80_Recommendation

Abstract

Taxation is the major tool for the collection of revenue by the government, to finance various development activities. In India, there are two types of taxes i.e. direct taxes and indirect taxes comprehensively. The structure of indirect taxes in India was based on three lists in the seventh schedule of the constitution of India. These lists were majorly based on the Government of India Act, 1935. The structure of indirect taxes was very complex and inefficient due to changes in technology, situations, etc. As per the requirement and need, the government brings out changes in the tax laws by introducing excise duty, customs duty, service tax, VAT, MODVAT, etc. The introduction of GST could be the result of all these changes made by the government. The world has given acceptance to GST long ago. The developed nation France was the first country that implemented the same in 1954 and eventually, India has also shown an inclination for GST on 1-7-2017 by implementing GST in its 101st amendment in the Constitution of India. It is a comprehensive value-added tax on goods and services. The structure of indirect taxes in India (as existing up to 30-6-2017), which includes taxes like VAT, entertainment tax, luxury tax, service tax, surcharge, etc. merged into GST.