A good tax system should keep in view issues of income distribution and, at the same time, also endeavor to generate tax revenues to support government expenditure on public services and infrastructure development.

Objectives of the study

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To understand the concept of goods and service tax

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To learn about shortcomings of the current taxation system in India

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To understand how GST will work in India

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To understand the benefits of GST

over the current taxation system in India

Research methodology

The study focuses on the extensive study of Secondary data collected from various books, National& international Journals, government reports, publications from various websites which focuses on various aspects of Goods and Service Tax.

VALUE ADDED TAX

The VAT is a system of indirect taxation, which has been introduced in lieu of sales tax. It is the tax paid by the producers, manufacturers, retailers or any other dealer who add value to the goods and that is ultimately passed on to the consumer. The VAT has been introduced in India to ensure an affair and uniform system of taxation.VAT enhances competitiveness by removing the cascading effect of taxes on goods and makes the levy of tax simple and self-regulatory, ensuring flexibility to generate large revenues. The cascading effect is brought about by the existing structure of taxation where inputs are taxed before a commodity is produced and the output is taxed after it is produced.