International Research Journal of Engineering and Technology (IRJET) e-ISSN: 2395 -0056 Volume: 04 Issue: 04 | Apr -2017 www.irjet.net p-ISSN: 2395-0072 © 2017, IRJET | Impact Factor value: 5.181 | ISO 9001:2008 Certified Journal | Page 2760 GST: An economic overview: Challenges and Impact ahead Prof.Pooja.S.Kawle 1 , Prof.Yogesh.L.Aher 2 1 Assistant Prof. MBA Dept, SRES College of Engineering, Kopargaon, Maharashtra, India 2 Assistant Prof. MBA Dept, SRES College of Engineering, Kopargaon, Maharashtra, India ---------------------------------------------------------------------***--------------------------------------------------------------------- Abstract – Goods and service is very comprehensive tax structure when implemented at the national level . It is one of the significant step towards the development of the country. It is one of the biggest tax revolution which is all set to integrate the state and national economy to boost the overall growth of the country. Presently companies and businesses pay multiple taxes which increases the cost of product and also hampers the profit level of the company. Multiple tax and complex taxation system is one of the biggest hurdle for economic growth of the country. Once the GST system is applied their would be single tax system which would record a significant development in comprehensive indirect taxation reform. Under the GST system their would be only on rate applicable for both goods and services. GST will create a business friendly environment, as prices will fall and it would also control the inflation rates. Key Words: Goods and service tax, economic development, indian economy and value added tax. 1.INTRODUCTION Taxation plays an very important in economic development of country. With much awaited GST system and in-depth analysis , here we are with final GST bill passed by the parliament. Because taxes are only means for financing the public goods because they cannot be properly priced in the market. And government is only the source of funding using the taxation methods. As taxes are the drivers of the economy. Tax regimes should be designed in such a manner that is does not become the source of distortion in the market or result in failure of market. Raising a sufficient amount of revenue is main aim of tax law in efficient , effective and equitable manner. Tax policies are important contributor to the economy in both the cases efficiency and equity. Good tax system should keep in view the issues of income distribution and also focused on strategies to generate tax revenues to support government expenditures on public services and infrastructural development. GST stands for Goods and Service Tax. Domestic trade tax will be levied in the form of a value added tax on all goods and services , in practice with some exemptions. VAT exempts all inputs including capital goods. Moreover it is general tax is on domestic consumption. Basically there is need to change the taxation pattern, as double taxation system demotivates the consumer from consumption of products. It also impacts spending pattern of public. Development of the economy depends on the purchasing power of the country. GST is convenient and economically efficient way of taxing the consumption. Basically there are very few exemptions because it has single rate and it becomes a proportional tax on consumption. One level of tax is efficient way of collection , because it either goes to the state or central level. Multiple level of tax is distortion in case of destination of tax collection. Tax should go to the state in which the concerned consumer lives. This will automatically take place if tax is levied at the central level or state is in unitary level with the one and only level of tax collection. If GST has to be implemented at central level i.e. in one level, it has to face many challenges at central level 1.1 Literature Review Poonam, 2017 in her study , she had cleared that GST would be a very important step in the field of indirect taxation. The cascading and double taxation effects can be reduced by combing central and state taxes. Consumer’s tax burden will approximately reduce to 25% to 30% when GST is introduced. After introduction of GST concept, Indian manufactured products would became more and more competitive in the domestic and international markets. This taxation system would instantly encourage economic growth.GST with its transparent features will prove easier to administer .In this paper the author has tried to attempt to spot the concept of GST & its current status in India. Paper has tried to give information about GST system. The study also aims to be familiar with the advantages and challenges of GST in Indian scenario. Shefali Dani has proposed that GST regime is a half- hearted attempt to rationalize indirect tax structure. Approximately more than 150 countries have implemented GST concept. As per researcher government of India must study the GST regime set up by various countries and also their fallouts before implementing gst. IT is the need of hour that, the government must make an attempt to insulate the vast poor population of India, against the inflation due to implementation of GST. There is no doubt, GST will simplify its existing indirect tax system and will have to help to remove inefficiencies created by the existing current heterogeneous tax system, only if there is a clear consensus over issues of threshold limit, revenue rate, and inclusion of petroleum products, electricity, liquor and real estate.