Historical background for implementation of GST in India with special reference to managing its dispute resolution mechanism

Abstract

Over the centuries system of taxation has been shaped and reshaped to make it acceptable, newlineeffective and efficient. The journey of restructuring the tax system has been going on to make it newlinemore and more meaningful. While the innovations and developments in information and newlinecommunication technology have made the tax system more objective, transparent and effective, newlinethe innovations and developments in finance and business models, globalization and newlineliberalization policies, emergence of MNEs as lead players and increase in the international newlinetrade have contributed in making the tax system a complex one (Basavaraj. 2014). newlineIndian taxation system has undergone through set of reforms during the previous decade newlineand is still continuing the process through advent of goods and service tax system. The Goods newlineand Services Tax (GST) is a value added tax that directly affects every sector and sections of our newlineeconomy. Earlier excise tax was imposed on manufactured goods, Value Added Tax (VAT) or newlineCentral Sales Tax (CST) was imposed on sales, but now GST is levied on supply of goods i.e., newlinewhere the goods are delivered and consumed and where services have been provided. Indian newlineservices sector is the fastest growing sector in India, contributing significantly to gross domestic newlineproduct (GDP). India is a major proponent of liberalizing services both in the World Trade newlineOrganization and in its bilateral trade agreements, Service tax rate at15 percent was charged on newlinethe services, but GST is introduced at a higher rate as a result the cost of services is increased. newlineGoods and Service Tax in place of service tax at higher rate but single tax in place of multiple newlinetaxes and how the taxpayers are considering this reform is important aspect to be considered. newlineBased on previous studies, perception can be made that individual with positive attitude towards newlinetax, commonly believed to equality and fairness in the tax system, tax administration and newlinecompliance with the commission of the tax law (Norsiah, 2002). newlineWhen introducing a new regime and policy, it is