The IUP Journal of Accounting Research and Audit Practices:
A Study on GST and Its Probable Impact on the Sales Tax Revenue of Kerala
The IUP Journal of Accounting Research and Audit Practices
T Benix Kanjiravila
For delivery in electronic
format: Rs. 50;
For delivery through courier (within India): Rs.
50 + Rs. 25 for Shipping & Handling Charges
To download this Article click on the button below:
Goods and Services Tax (GST) is a type of unified value-added tax on goods and services which is levied at country level. The main objective of this new tax regime in India is to avoid multiple taxation on same goods and services. Introduction of this destinationbased consumption tax will stimulate Indian industry and ensure its overall economic development and growth. The present paper mainly focuses on examining the structure, features and expected challenges of proposed GST, and also endeavors to forecast its probable impact on the sales tax revenue of Kerala. Based on the trends from 2004-05 to 2014-15 under VAT regime, the non-VAT and VAT revenue of Kerala is expected to grow at a diminishing rate in the coming years. This shortage of VAT revenue will have an adverse impact on the economy. GST is the only option to increase the tax revenue of Kerala.
Goods and Services Tax (GST) is a type of unified value-added tax on goods and services
which is levied at country level. The main objective of this new tax regime is to avoid
multiple taxation on same goods and services. Introduction of this destination-based
consumption tax will stimulate Indian industry and ensure its overall economic development
The proposed GST will act as a fulcrum to reduce unemployment in the country. Both
central and state governments levying tax on goods and services at different rates have created
inefficiency in the tax system. GST is expected to bring back efficiency in the tax system and
it will restrict the leakages. Fiscal motives to implement the proposed GST shall be: (i) To
expand the fiscal space and improve economic viability of the government by way of increasing
public expenditure under the targeted revenue constraints; (ii) To eliminate the definitional
separation between goods and services; and (iii) To achieve efficiency in tax system and envisage
the powers and responsibilities of taxation authority.
Accounting Research and Audit Practices, Goods and Services Tax (GST), Theoretical Background of GST, Probable Impact, Sales Tax Revenue, International Perspective, History of GST in India, Kerala.