A Critical Study on Pre-GST & Post GST Scenar...

A Critical Study on Pre-GST & Post GST Scenario in India

Author Name : Kaliselvi K, Venkatesh G

INTRODUCTION

Tax is a fee charged by a Government on a product, income or activity. If tax is levied directly on personal or corporate income, then it is a direct tax. If tax is levied on the price of a good or service, then it is called an indirect tax. The purpose of taxation is to finance public goods and services, such as street lighting, street cleaning, road, dams, utility services etc. Since public goods and services do not allow a non-payer to be excluded, or allow exclusion by a consumer, there cannot be a market in the goods or services, and so they need to be provided by the Government or a quasi-Government agency, which tend to finance themselves largely through taxes. The word tax is derived from the Latin word „taxare‟ which means „to estimate‟.

 “A tax is not a voluntary payment or donation, but an enforced contribution, exactly pursuant to legislative authority" and is any contribution imposed by Government whether under the name of toll, tribute, impost, duty, custom, Excise, subsidy, aid, supply, or other name.”

(Black’s Law Dictionary).

In India, the tradition of taxation has been in force from ancient times. It finds its references in many ancient books like 'Manu Smriti', 'Arthasastra' and ‘Kautilya’ " Now India has implemented the uniform tax system it has some of the issues relating to implementation, rate of tax etc., So that the researcher finds some solution to eradicate difficulties in our tax system.

KEY WORDS: Supply of Goods, Input Tax Credit, Registration, Indian Economy, Federal Structure.