Review on Global Implications of Goods and Service Tax and its Indian Scenario

R, Revathi and L. M., Madhushree and Aithal, Sreeramana (2019): Review on Global Implications of Goods and Service Tax and its Indian Scenario. Published in: Saudi Journal of Business and Management Studies, ISSN 2415-6663 , Vol. 4, No. 4 (April 2019): pp. 337-358.

Abstract

Goods and Service tax is tax regime adopted by 160 countries over the globe in order to evade cascading of tax in the economy. India introduced GST in the year 2017 whereas many other countries implemented GST many years before in their tax system. France was the primary country to adopt this single tax system in 1954 and followed by Germany, Italy, Japan, South Korea. GST is one of the top initiatives taken by most of the countries for a structured and developed economy. A value-added tax levied on mainly goods and services provided or sold for domestic or household consumption is called Goods and Service Tax. GST provides revenue or income for the government in the growth procedure of the economy. The section of GST which is accumulated or collected from the consumers by the business or seller of the goods forwarded to the government. In some countries, Goods and Service Tax is also acknowledged as Value Added Tax. This review paper focused on the implications of GST on different countries economy and its collision on the society. Many scholars have researched on this topic before and after the implementation in India. The paper throws light on the various aspects of GST, and how it affects different industrial sectors in the economy. The paper also analyses how various researchers have interpreted their study about GST, its future implications, and impacts in their countries with special emphasis on India.

• Item Type: MPRA Paper
• Language: English
• Keywords: Goods and Service tax, Value added Tax, ASEAN, Asia, Europe, Oceania, India
• Subjects: A - General Economics and Teaching > A1 - General Economics; E - Macroeconomics and Monetary Economics > E4 - Money and Interest Rates; G - Financial Economics > G0 - General; M - Business Administration and Business Economics ; Marketing ; Accounting ; Personnel Economics > M2 - Business Economics

References

[1] https://www.investopedia.com/terms/g/gst.asp- Retrieved on 15/08/2018.

[2] https://www.investopedia.com/terms/c/ccra.asp- Retrieved on 15/08/2018.

[3] https://cleartax.in/s/gst-law-goods-and-services-tax- Retrieved on 16/08/2018

[4] Eva, Van, Leemput, Ellen, A. Wiencek (2017). The Effect of the GST on the Indian Growth, International Finance Discussion Paper, 1(1), 1-10.

[5] Ravishu, Raj(2017). Goods and Service Tax, Social Science Research Network, 1-5.

[6] Milandeep, Kour, Kajal, Chaudhary, Surjan, Singh., Biljinder, Kaur (2016). A study on impact of GST after its implementation. International Journal of Innovation Studies in Sociology and Humanities, 1(2), 17-24.

[7] Khurana, A., Sharma, A. (2016). Goods and Services Tax in India–A Positive Reform for Indirect Tax System. International Journal of Advanced Research, 4(3), 500-505s.

[8] Sehrawat, M., Dhanda, U. (2015). GST in India: A key tax reform. International Journal of Research-Granthaalayah, 3(12), 133.

[9] Imtiyaz, Ahmad, Shah., Asif, Tariq(2017), Impact of GST on Jammu and Kashmir Economy, Journal of Advance Management Research, 5(5), 418-426.

[10] Prajapati, H. K. (2016). Challenges and Implementation of GST (Goods and Service Tax) in India. Paripex-Indian Journal of Research, 5(7), 96-98.

[11] Shaik, S., Sameera, S. A., & Firoz, M. S. C. (2015). Does goods and services tax (GST) leads to Indian economic development. IOSR Journal of Business and Management, 17(12), 01-05.

[12] Mujalde, S., & Vani, A. (2017). Goods and Service Tax (GST) and its outcome in India. Journal of Madhya Pradesh Economic Association, 27(1), 1-4.

[13] Habiba,Abbasi (2018). GST: Impact and Challenges Faced by Indian Economy. International Journal on Recent and Innovation Trends in Computing and Communication, 6(4), 232-235.

[14] Shefali, Dani (2016). A Research Paper on an Impact of Goods and Service Tax (GST) on Indian Economy. Business and Economics Journal, 7(4), 264.DOI: http://dx.doi.org/10.4172/2151-6219.1000264.

[15]Malviya, S. (2018). GST in Mumbai. GST Simplified Tax System: Challenges and Remedies, 1(1), 362-364.

[16] Vikas, Kumar (2016). GST: Positive and Negative Effects on Common Man in India. Journal of Commerce and Trade, 11(2), 113-117.

[17]Shebazbano, Khan., Rashmi, Soni (2018). Impact of GST on Textile Hub of Mumbai (Bhiwandi Dist. Thane). Accounts and Financial Management Journal, 3(2), 1318-1322.

[18] Saravanan, S., Chandra, Mohan, K. (2017). Assessment and Impact of Existing Indirect Tax to Goods and Service Tax in India. International Journal of scientific Research in Computer Science, Engineering and Information Technology, 2(3), 623-629.

[19] Pranesh, Debnath (2016). Implementation of goods and service tax (GST) in India and its control over the tax collection. Journal of Commerce and Trade, Society for Advanced Management studies, 11(1), 28-35.

[20] Suresh, P., Sivakumar, T. (2016). Overview of GST in India. KAAV International Journal of Economics, Commerce and Business Management, 3(4), 290-304.

[21] Rajesh, Desai., Ankit, Patel (2015). Goods and Service tax in India: An opportunities and Challenges. International Journal of Current Research, 7(11), 23347-23349.

[22] Vasanthagopal, R. (2011). GST in India: A Big Leap in the Indirect Taxation System. International Journal of Trade, Economics and Finance, 2(2), 144-146.

[23] Mohamad, Ali, Roshidi, Ahmad., Zuriadah, Ismail., Hazianti, Abdul, Halim (2016). Awareness and Perception of Taxpayers towards Goods and Services Tax (GST) Implementation. International Journal of Academic Research in Business and Social Sciences, 6(11), 75-93.

[24] Lourdunathan, F., & Xavier, P. (2017). A study on implementation of goods and services tax (GST) in India: Prospectus and challenges. International Journal of Applied Research, 3(1), 626-629.

[25] Bird, Richard, Miller(2012) The GST/HST: Creating an Integrated Sales Tax in a Federal Country. Rotman School of Management Working Paper No.2115620. DOI: http://dx.doi.org/10.2139/ssrn.2115620.

[26] Shaari, N., Ali, A., & Ismail, N. (2015). Student's Awareness and Knowledge on the Implementation of Goods and Services Tax (GST) in Malaysia. Procedia Economics and Finance, 31, 269-279. DOI: https://doi.org/10.1016/S2212-5671(15)01229-0.

[27] Bolton, T., & Dollery, B. (2005). An empirical note on the comparative macroeconomic effects of the GST in Australia, Canada and New Zealand. Economic Papers: A journal of applied economics and policy, 24(1), 50-60. DOI: https://doi.org/10.1111/j.1759-3441.2005.tb00994.x.

[28] Narayanan, S. (2014). The impact of the goods and services tax (GST) in Malaysia: Lessons from experiences elsewhere (A note). The Singapore Economic Review, 59(02), 1450009.DOI: https://doi.org/10.1142/S021759081450009X.

[29] Sui Pheng, L., Loi, C. P. (1994). Implementation of the goods and services tax (GST) in the Singapore construction industry. Journal of Property Finance, 5(3), 41-58. DOI: https://doi.org/10.1108/09588689410078593.

[30] Martinez, Vazquez, J., Moreno-Dodson, B., Vulovic, V. (2012). The Impact of Tax and Expenditure Policies on Income Distribution: Evidence from a large panel of countries. The Social Science Research Network electronic Paper Collection,1-45. DOI: http://dx.doi.org/10.2139/ssrn.2188608.

[31] Poh, Jin, Goh., Cham, Tat, Huei., Alexander, Guan, Meng, Tay. (2017). Consumer's Perception towards the implementation of Goods and Services Tax (GST) in Malaysia: A Review Paper. Journal of Global Business and Social Entrepreneurship, 1(4), 17-23.

[32] Dalsgaard, T. (2000). The tax system in Mexico: a need for strengthening the revenue-raising capacity (No. 233). OECD Publishing. DOI: http://dx.doi.org/10.1787/713001800850.

[33] Pope, J. (2001). Estimating and alleviating the goods and services tax compliance cost burden upon small business. Revenue Law Journal, 11(1), 1-18.

[34] Govinda, Rao, M.(2000). Tax Reform in India: Achievement and Challenges. Asia-Pacific Development Journal, 7(2), 59-74.

[35] Forsyth, P., Dwyer, L. (2002). Market power and the taxation of domestic and international tourism. Tourism Economics, 8(4), 377-399. DOI: https://doi.org/10.5367/000000002101298197.

[36] Acharya, S. (2005). Thirty years of tax reform in India. Economic and Political Weekly, 2061-2070. DOI: https://www.jstor.org/stable/4416644.

[37] Bajpai, N., Sachs, J. D. (2000). Foreign direct investment in India: Issues and problems. HIID Development Discussion Paper No. 759, 1-21. DOI: https://doi.org/10.7916/D8F195J2.

[38] Rao, R. K., Chakraborty, P. (2010). Goods and services tax in India: An assessment of the base. Economic and Political Weekly, 49-54.DOI: https://www.jstor.org/stable/25663968.

[39] Rao, M. G. (2005). Tax system reform in India: Achievements and challenges ahead. Journal of Asian Economics, 16(6), 993-1011. DOI: https://doi.org/10.1016/j.asieco.2005.10.003.

[40] Gordon, R., Li, W. (2009). Tax structures in developing countries: Many puzzles and a possible explanation. Journal of public Economics, 93(7-8), 855-866. DOI: https://doi.org/10.1016/j.jpubeco.2009.04.001.

[41] Chadha, R. (2009). Moving to Goods and Services Tax in India: Impact on India on Growth and International Trade. National Council of Applied Economic Research, 1-78

[42] Wenpo, S. H. I., Kang, J. I. A. (2010). The VAT Reform for Broadening the Tax Base and Adjustment of Intergovernmental Fiscal Relations in China. Finance & Trade Economics, 11, 46-51.

[43] Mansor, N. H., &Ilias, A. (2013). Goods and services tax (GST): A new tax reform in Malaysia. International Journal of Economics Business and Management Studies, 2(1),12-19.

[44] Palil, M. R., & Ibrahim, M. A. (2011). The impacts of goods and services tax (GST) on middle income earners in Malaysia. World Review of Business Research, 1(3), 192-206.

[45] Mawuli, A. (2014). Goods and services tax: An appraisal. In Paper presented at the PNG Taxation Research and Review Symposium, 29, 1-30.

[46] Nath, B. (2017). Goods and services tax: A milestone in Indian economy. International Journal of Advanced Research, 3(3), 699-702.

[47] Kumar, N. (2014). Goods and Services Tax in India: A way Forward. Global Journal of Multidisciplinary Studies, 3(6), 1-10.

[48] https://cleartax.in/s/impact-of-gst-on-agricultural-sector - Retrieved on 6/12/2018.

[49] https://economictimes.indiatimes.com/wealth/personal-finance-news/how-gst-impacts- fmcg-firms/articleshow/58868546.cms- Retrieved on 8/12/2018.

[50] https://www.financialexpress.com/industry/impact-of-gst-on-consumer-durables-good-news-despite-highest-tax-slab-of-28-pct-burden-may-not-be-passed-on-to-consumers/745565/- Retrieved on 8/12/2018.

[51] https://cleartax.in/s/impact-of-gst-on-the-cement-industry/- Retrieved on 8/12/2018.

[52] https://www.ey.com/in/en/newsroom/news-releases/ey-gst-impact-on-the-auto-industry- Retrieved on 8/12/2018.

[53] https://cleartax.in/s/gst-impact-on-healthcare-pharma-sector/- Retrieved on 9/12/2018.

[54] https://blog.saginfotech.com/gst-impact-on-indian-aviation-sector- Retrieved on 9/12/2018.

[55] https://economictimes.indiatimes.com/markets/stocks/news/how-gst-will-impact-sectors/airlines/slideshow/59408719.cms- Retrieved on 9/12/2018.

[56] https://www.legalraasta.com/gst/impact-gst-tourism-sector/- Retrieved on 10/12/2018

[57] https://housing.com/news/gst-real-estate-will-impact-home-buyers-industry/- Retrieved on 10/12/2018.

[58] https://www.livemint.com/Opinion/NbSCQ2KGNEcTGf1PA7IxcM/GST-impact-on-the-logistics-sector.html- Retrieved on 10/12/2018.

[59] https://finapp.co.in/gst-impact-e-commerce-india-study/- Retrieved on 10/12/2018.

[60] https://www.kotak.com/en/stories-in-focus/gst-rate-slabs.html - Retrieved on 10/12/2018

[61] https://www.taxmann.com/blogpost/2000000037/gst-tax-rate-what-are-rate-of-taxes-under-gst.aspx - Retrieved on 10/12/2018.