Performance of Goods and Services Tax system in India in recent years

In 21century we pay various taxes including direct and indirect taxes, which are felt as burden on us for which corruption are increasing in every field. So, to reduce from these various taxation system and control increasing corruption, GST was implemented India in 1 st July 2017. GST is an indirect tax that merged multiple taxes into a single tax system that will be levied on manufacture, sale and consumption of goods and services. Indian GST followed three GST model like -Central GST, State GST and IGST (Integrated Goods and Services Tax).This paper is designed specifically to provide an in-depth knowledge of GST and comparison of Indian GST taxation system rates with other countries, and also presented in-depth coverage regarding its advantages and disadvantages towards the economy for GST implementation in a developing country like India. The present paper has an attempt to find out the compound annual growth rate (CAGR) and average annual growth rate (AAGR) of total GST collection India during FY 2017-18 to FY 2022-23.


Introduction
Tax is the major source of revenue to government in India.Taxes are levied as per the laws prescribed in constitution of India.It is levied by central and state government and also by local bodies.Any nation's economic growth is intimately correlated with its taxation system.A country's economy will grow when its tax system makes doing business simple and eliminates the possibility of tax evasion.Direct taxes and indirect taxes are the two categories into which taxes in India are divided.Direct taxes are those that are paid to the taxing body directly by the person or organization.They arise from profits and income.Indirect taxes are those that are not paid to the taxing authority directly by the person or company.In contrast to taxes on income and profits, they are imposed on products and services.Corporation tax, income tax, estate duty, interest tax, wealth tax, gift tax, land revenue, agricultural tax, hotel receipts tax, expenditure tax, general sales tax, entertainment tax, vehicle tax, entertainment tax on goods and passengers, taxes and duties on electricity, and taxes on the purchase of sugarcane are examples of direct taxes.Indirect taxes include customs, union excise duties, service tax, state excise duty, stamp and registration fees, and state excise duty.Taxation is a vital and vital source for the growth and development of an economy.The goals of a nation's tax policy should align with those of its overall economic strategy.Whether it is a direct tax or an indirect tax, taxes make up a significant portion of a government's revenue.Any nation's public finances must be developed into an exceptional strength, and this requires a sound tax system.This is the reason why different tax reforms are being implemented in various nations during the current globalization period.

Objectives of the Research
➢ To study the Goods and Services Tax structure in India.➢ To understand how GST work in India.➢ To furnish the information for future research on GST based taxation system.

Review of literature
Dr.Sunitha and Dr. P. Sathish Chandra (2015) in their paper "Goods and service tax (GST): As a New path in tax reforms in Indian economy".Conclude that the Government of India is not satisfied with the present tax system because it has some short comings.K. Sindhura studied (2018) Tax reform "Goods and Service Tax (GST) and its Impact on common man" .In his paper he conclude that GST has both positive and negative impact on common man.Nabendu Basak (2017)" studied Impacts of progressive tax reform in India: Goods and Service tax (GST) -An Approach".He explained in his paper that although GST fuels inflation in short run, but in a long run stakeholders will be benefitted.He also said in his paper that this tax system will establish the opportunity of corruption free and transparent Indian Revenue Services.Dr.Rabinarayan Samantara (2021) studied Tax reforms in India: A critical Analysis.In his paper author attempted to examine the critical analysis of various tax reforms in India.According to author there is an ample scope for augmenting revenue generation from certain direct taxes including agricultural income tax and land revenue as well as from indirect taxes such a stamp and registration fees, entertainment tax, tax on vehicles, etc.K Sindhura (2018) in his paper on Tax reform Goods and Service Tax (GST) and its impact on common man.He suggested that the challenges posed after the roll out of the reform should be attended by the Government.The reform should not be looked with political view.From the perspective of common man as of now it has both positive and negative aspects.

Materials and Method
The present study is based on secondary data.Data was compiled from the various reports published by Department of Revenue Ministry of Finance Government of India.Literature review has prepared through available studies, articles and journals.

Period of Study
The study covered a period of 6 years from August 2017-18 to March 2022-23.

Analytical tools
In order to estimate the year on year basic growth rate of GST collection following formula has been used

What is GST?
A single indirect tax on all products and services, known as the Commodities and Service Tax (GST), has taken the place of the different indirect taxes that were formerly levied on a variety of goods and services.
France was the first nation to adopt GST in their tax system in 1954, and afterwards the idea of GST spread abroad.More than 160 nations currently use the GST idea as part of their taxation structure.In India, the 122nd Constitution Amendment (GST) Bill, 2014, which was introduced by the central government in December 2014, was approved on August 3 in the Rajaya Sabha and August 8 in the Lok Sabha.The GST was finally implemented by the Indian government on 1 July 2017, and Assam was the first Indian state to pass the GST Bill on 12 August.

Intra-state sale Existing taxation system
Intra-state sale under existing taxation system comprises of VAT + Service Tax/Central Excise.

Under GST taxation
Intra-state sale under GST taxation system comprise of CGST + SGST.

Existing taxation system
The taxation system for inter-state sale under existing taxation system comprises of Central Sales Tax+ Service Tax/Excise.

Under GST taxation
The taxation system for inter-state sale under GST taxation system would comprise of IGST.
With an example we can understand:-An individual consumer in the state of Haryana purchased a bike from a motorbike dealer for Rs.80,000.Here, the GST rate is 18%, 9% CGST, and 9% SGST.The dealer will receive around 14,400 rupees, of which 7,200 would be given to the Haryana government and the remaining 7,200 to the Central government.
If he later sold the same thing to a merchant in Odisha for Rs.80,000.The dealer would receive roughly Rs. 14,400 as IGST and the GST rate would be 18%.The IGST would be sent directly to the Center.He would no longer be required to pay both the SGST and CGST.From the above table, we can see that every country has a fixed GST rate, but in case of India the GST rate depends upon the goods and commodity or the GST rate dependence on that particular goods and commodity.For this reason, there are 4 types of GST prevailing in India starts from 5% GST to highest 28% GST.

Goods and Services Tax (GST) -Current Scenario in India:
Table -  In the above bar diagram, we can see average monthly gross GST collection in lakh crore from Financial year 2017-18 to 2022-23 financial year.The average annual growth rate of total GST collection from financial year 2017-18 to 2022-23 financial year is 13.30%.

Figure-5 Annual Growth rate of Total GST collection in India
From figure-5 we can see that for financial year 2018-19 the growth rate of GST was 18%.The GST growth rate decreased to 11.45% for financial year 2019-20, again it decreased to 2020-21 financial year due to impact of COVID-19 in India.For financial year 2021-22 growth rate increased to 14.58% compare to 10.10% in previous financial year.Once  Benefits of GST ➢ It will support standard operating processes for taxpayer registration, tax refunds, uniform tax return forms, a common tax base, and a standard method of classifying goods and services.➢ Harmonization of policies, practices, and tax rates between the federal government and states as well as between states.➢ By eliminating rate arbitrage between neighboring States and that between intra-and inter-state sales, similar uniform SGST and IGST rates will lessen the incentive for evasion.➢ As input Tax Credit will be available for both goods and services at every point of supply, it will reduce cascading of taxes.➢ Automated and simplified processes for many different tasks, including registration, returns, refunds, tax payments, etc.

Conclusion
The importance of the GST's introduction is evidenced by the multiple advantages it offers India's taxation system.It is a significant step forward in India's effort to modernize its indirect taxation structure.Our analysis indicates that between FY 2017-18 and FY 2022-23, GST collection in India is anticipated to grow at an average annual rate of 13.30%.Along with the COVID-19 pandemic's effects, the continuous growth in GST collection may also be linked to higher tax compliance, which was made possible by a number of tax administration and policy reforms the government put in place over the past few years.
Taxation system contains different types of taxes such as-Commercial taxes include Central Excise Duty, Value Added Tax (VAT), Central Sales Tax (CST), Food Tax, Octroy, Entry Tax, Entertainment Tax, Luxury Tax, Purchase Tax, Advertisement Tax, Service Tax, and Taxes on Lotteries, Betting, and Gambling, among others.
Compound Annual Growth Rate) CAGR= ( To find out Average Annual Growth Rate for our study, we have used following formula AAGR=