A Critique of the Discrepancies of India’s GST System and Propositions to Stabilize India’s Tax Regime

Abstract

The goods and services tax that was introduced in 2014 by the current Indian government has been an unprecedented and thus very controversial decision in the history of Indian economics. The onset of this tax regime was a long drawn out process which has led to contention amongst experts.  This paper strives to provide a neutral critique of this new age tax system and how it strikingly differs from all other nations. The taxes this new system does away with and the ones it will assimilate into itself for better results and financial coherence The paper also navigates through some of the focal features of the tax regime like it’s revised rate structure and invoice/voucher matching system, and how these novel features have failed to live up to its expectations or why it’s implementation has fallen short of competent. Amidst a time of acute scrutiny and speculation where India finds itself divided into three schools of thought: whether we should revert back to our old tax system; Whether we should give the current system more time as it is too early to make a call; or whether we should continue as the current system is already reaping benefits and can be called a success. This paper goes on to adequately pinpoint areas and sectors where change is needed and what developments must be made to ensure stability and success for our nation’s tax system.