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The word "tax" comes from the Latin word "taxare," which meaning "to calculate." A tax, also known as a subsidy, custom, duty, impost, excise, tribute, or supply, is a government-imposed contribution. In the ancient time, the taxation system was mainly imposed under the empire of the old land. At that time, taxes were generally collected in the form of pharaohs from the people. At the present time, In India, the tax is collected in two forms i.e. Indirect tax and Direct tax. Indirect tax that generally not directly collected by the taxpayer but direct tax collected directly from the payer i.e. corporate tax, wealth tax and income tax, but rather through intermediaries such as retailers and individuals who ultimately shoulder the tax burden. The Goods and Services Tax (GST) is an indirect tax that encompasses all indirect state and federal taxes. GST is a single tax that is applied to a variety of goods and services. All CENVAT, central sales tax, state sales tax, octroi, and other taxes will be included in GST. In India, the Goods and Services Tax (GST) was implemented in the central hall of parliament on July 1, 2017 [9].

[1] The major goal of her study "effect of GST on Indian economy" was to figure out why the GST law would stifle the Indian economy's growth and development. She remarked that the Indian government should consider the failures that have occurred in nations that have already implemented GST before introducing it. The government should also protect the vast majority of the poor from possible inflation as a result of the implementation of GST. The goal of [3] "Does Goods and Services Tax (GST) Leads to Indian Economic Development?" was to evaluate the concept and impact of GST on the Indian economy, as well as its problems. They came to the conclusion that India should gradually adopt international norms in taxation, corporate law, and management techniques in order to become a leader in these areas. GST is not a straightforward tax, but it is a step forward over the previously chaotic indirect tax and VAT. Rather than giving special consideration to some goods and services, a single charge should be given to all commodities and services. [5] Analysed GST features and effects on products and services in his study "Impact of GST on Indian Economy." The Goods and Services Tax has been redesigned to streamline India's indirect tax system. Many changes happened as a result of the establishment of GST, as well as numerous benefits. He stated that GST plays an important part in the country's growth and progress. As a result, a well-planned GST process is appealing to the existing multiple taxation system, and the government has stated that GST will minimise compliance burdens and eliminate price differences between imported and Indian goods. [2] Discuss the future implications of this new tax. The researchers forecasted that the GST will increase the cash flows, develop the economy, reduce compliances, and cost. This research study is empirical. The researchers have taken two regimes, pre and post-GST regimes, to verify the differences. This study is based on four parameters which include technology, support, convenience, and timeline. The researchers have found that GST is more comfortable and supportive as compared to the previous system. This study also reveals that the timeline variable is not making any significant difference between both the regimes. However, technology is a major hindrance in the execution of GST properly In his study "History of Tax," [7] discovered that taxes can be described as the government's sources of revenue. Tax evasion is a type of defiance against the imposition of mandatory taxes. Taxation is a social phenomena. Although VAT is a new tax, sales taxes and customs fees have been around since the Roman Empire. VAT was initially devised during WWI. Germany has evolved into a multistage VAT system to replace cascading turnover tax. In the 1960s, only about ten countries had implemented VAT. Today, technology and globalisation have played a role in the spread of VAT to over 130 nations.

Table: GST Regimes in State and Central

 I.        GST
Several types of taxes such as Excise duty, VAT, entertainment tax, etc were collected from the people in India and most of the people confused of it.Previously, India relied heavily on indirect taxes due to political pressure, the agricultural economy also known as personal income. The Indian government tries hard for various tax reforms from time to time in order to simplify things and intellectualize the indirect tax system. As per entry list II of the 7th schedule of the constitution, the state government imposed VAT in 2005 to replace revenue taxes. VAT was a welcome improvement; after a while, individuals began to notice flaws in the system and began extracting VAT from both the federal and state governments. CENVAT, on the other hand, had the disadvantage of eliminating some taxes [11]. It also assures that a tax payer can claim credit for taxes paid on inputs when discharging his output tax burden. In India, the indirect tax structure has become more challenging due to the multitude of taxes at the state and federal levels. As a result, GST was introduced to address the problem of "tax on tax" and to simplify the tax structure.In 1954, France imposed GST for the first time, making it the first country in the world to do so. Since then, it has been adopted by 165 countries [1].
On July 1, 2017, the President, Prime Minister, and Finance Minister introduced and enacted India's largest tax overhaul in front of the president and prime minister in the central hall of Parliament. It's a watershed moment for India, which will be ruled by modern information technology (IT) and monitored by a population of 1.25 billion people. GST is a mash-up of all indirect taxes in India, as well as a value-added tax levied by both the central and state governments on goods and services. This all-encompassing tax will be based on the value added and will apply to all stages of the manufacturing process, from production to sale.Although many countries have implementedGST system, certain nations, such as Brazil, Canada, and India, have a dual Goods and Service Tax system, in which both the state and federal governments assess taxes. Government State and federal taxes on goods and services are combined in the planned dual GST system. As a result, both the federal government and state governments are able to collect taxes on goods and services at various points throughout their life cycle, from manufacture through final usage [8].Credit for GST paid on inputs will be available when the GST burden on the output is freed, ensuring that GST is paid on the factors of value addition at every step and that there is no 'tax on tax' in the country. Indirect taxes are sometimes known as regressive taxes since demand for goods and services drops proportionately as tax rates rise. Indirect taxes on luxuries and exemptions on necessities might sometimes help to achieve equal distribution by levying them on luxuries and exempting them from necessaries. Indirect taxes are straightforward, and their collection costs are predictable over time. Indirect taxes are better in terms of efficiency and production. Because indirect taxes are hidden in prices, they are difficult to avoid [4]. This research study also discusses other countries' indirect taxation reforms (GST) including India. The researchers conclude that GST has increased the final prices of goods/services and it is less beneficial to poor households. This study also identifies that GST in Malaysia is regressive in nature. It is progressive only when supplies are zerorated and exempted. This paper suggests that households should make their consumption plan accordingly with increased tax rates and the government should also make GST policies according to local conditions of the country [6].

Figure: The Formation and mechanism of GST in India
Source: [14]
In India, the introduction of GST is a disorganizedshift; similar to the introduction of VAT, and it is encountering resistance in the outset. People will have equal possibilities for development as a result of the implementation of GST. The following are some of the items that are covered by GST:
Mechanism of GST how to calculate
1. The GST applies to 1,211 items, the majority of which fall under the 18 percent tax bracket. There are four tax brackets for goods and services: 5%, 12%, 18%, and 28 percent. A few of items, such as gold and diamonds, have special tax rates, while others are exempt. With the implementation of GST, things became both more expensive and less expensive.
Benefit of GST in India
The introduction of GST will result in a change in the tax structure, although there are benefits that can be realised as a result of GST implementation. The following are some of the advantages:
1. GST simplifies and transparentises the tax system, lowering the number of frivolous lawsuits.
2. By eliminating tax on tax, the GST minimises the effect of taxes lowering.
3. The manufacturing sector faces a lower tax burden as a result of the GST.
4. GST benefited the ordinary man to some extent by lowering the cost of the same things that were previously more expensive, resulting in higher quality goods at lower costs.
5. Various indirect taxes were repealed by GST.
6. GST simplifies and transparentises the tax system, lowering the number of frivolous lawsuits.
7. By eliminating tax on tax, the GST minimises the effect of taxes lowering.
8. The manufacturing sector faces a lower tax burden as a result of the GST. Because production costs are lower now, quality goods will be available at low prices.
9. GST aided some measure by lowering the cost of previously more expensive goods.
10. GST also contributes to the creation of order and increased expenditure by delivering high-quality goods at reasonable prices. More demand leads to an increase in supply, which benefits producers.
11. With the adoption of GST, the Indian economy would grow in the long run, and black money circulation will be reduced.
13. The GST simplifies and simplifies the tax structure, resulting in an increase in foreign direct investment.
14. GST raises estimated 15 billion dollars in revenue for the Indian government and contributes to economic growth by creating jobs, increasing exports, and raising foreign exchange reserves, among other things.
15. To increase tax assessors, tax regulations have been made more consistent, resulting in a single point of taxes for the provision of goods and services throughout India. It will be achievable thanks to the GST [12].
   I.        SECTOR-WISE IMPACT OF GST IN INDIA
1. E-commerce:
With the passage of day, the sector of e-commerce has been significantly evolved and developed in India, especially, after the implementation of GST, huge growth has been observe in e-commerce sector. Nonetheless, the long term conseuqnces of GST will be interesting to watch out because e companies not pleased with new mechanism. As GST needs the collection of tax which highly affects the connection of seller and buyer, it will increase administrative costs for e-commerce businesses. TCS is currently trading at a 1% discount in India.
2. Pharma:
When it comes to the total impact of GST, the pharmaceutical and healthcare industries benefit the most. It will establish a level of performance for generic medication manufacturers, promote medical tourism, and clarify the tax system. As a result, a major concern for the pharmaceutical industry will be the pricing tax system. As a result, this industry anticipates a tax cut, which would make healthcare services more accessible to everybody. The healthcare sector will continue to be excluded from the GST, but all of its inputs would be taxed at a rate of 18 percent, raising the healthcare sector's operating costs.
3. Telecommunication:
The telecom sector's pricing will fall after the implementation of GST. Manufacturers will benefit from cost savings by successfully managing inventories and fortifying their warehouse. Because GST has removed the requirement of establishing state-specific bodies and transferring stocks, it will be easier for phone manufacturers to sell their equipment. This will reduce logistical expenses. The GST rate on this sector is now 18 percent, up from 15 percent earlier. With a bigger tax credit, the revenue is unlikely to reach 1%.
4. Textile:
As we all know, the textile sector in India provides a vast number of jobs for both qualified and unskilled individuals. It also contributes 10% to total exports, which will continue to rise under GST. Because cotton and textiles used to be subject to zero central excise charge, GST would have an impact on small and medium businesses (optional). After GST, the expected rate is 15%, which will have a moderate impact on the industry. In comparison to the current taxing structure, the impact will be neutral or slightly negative. However, they will benefit from lower transportation costs and savings, among other things.
5. Real Estate:
Real estate is a crucial industry in the Indian economy, and it also plays a significant role in job creation. We can't fully assess the impact of the Goods and Services Tax on real estate because it is highly dependent on current tax rates. Due to the implementation of GST, this sector has brought much-needed openness and accountability to the industry. The GST tax on under construction real estate projects will be only 12%, rather than the current 18%, because it will lower land costs.
6. Agriculture
Agriculture is the backbone of the Indian economy, as it employs a huge portion of the population and contributes a significant portion of the country's GDP, accounting for 16 percent of total GDP. The implementation of GST will address the agriculture sector's biggest problem, which is the transportation of agricultural products. Because it includes all types of taxes on agricultural product marketing, the Goods and Service Tax is a step closer to creating a single national agricultural market. Seeds have a 0% GST rate, tractors have a 12% GST rate, fertilisers have a 5% GST rate, and fertilisers have a 12% GST rate.
7. FMCG:
The FMCG sector is another key area that is benefiting from lower logistics and shipping costs, as well as the elimination of the requirement for numerous sales depots, thanks to the Goods and Service Tax. The tax burden would be reduced significantly in the FMCG sector. In the soap and hair oil market, there would be significant relief.
8. Freelancers:
Freelancing is yet a potential industry in India, and the rules and regulations governing it are still in flux. However, with the advent of the GST, it will be easier for freelancers to case their taxes online, which is also simple to accomplish. They are still taxed as service providers, but the new tax structure gives freelancers a lot more openness and accountability.
9. Automobiles:
The automobile industry is the largest producer, as it generates a large number of cars, which are mostly used by India's massive population. Motor vehicle tax, sales tax, VAT, road tax and other tax are the types of taxes that previously imposed on automobile sector. GOI combined all types of tax and form GST which is a combination of all taxes. Following the establishment of GST, the tax burden on the bulk of produced goods has decreased. Automobile sector reveals that the rate of tax will be reduced and SUV segment benefitting the most [10].
10. Startups:
Due to the increased registration limit, tax credit on purchases, and other factors, GST will fit nicely in the Indian startup landscape. Previously, various VAT regulations existed in different states in India, which caused a lot of complexity for businesses with a PAN India presence. However, since the implementation of GST, this issue has been rectified, as a consistent tax system has been implemented across the country.
11. Cement:
Before the implementation of GST, the cement sector pays 25% rate of tax but after GST, they likely to pay 18% to 20%. It brings bit relief in the cement sector business. The logistic tax is going to be decreased, which will benefit manufacturing firms twice over.
II.        IMPACT OF GST ON SERVICE SECTOR
"Not only does India's services industry account for the most of part of GDP but it also enhance the substantial foreign investment and effectively contributes  to exports and gives employment to large number of people”. " For the sector, the government has set a four-tiered GST rate system, with rates of 5%, 12%, 15%, and 20% ", 18%, and 28%, respectively." The majority of services, on the other hand, will be taxed at 18%. In 2015-16, the sector accounted for roughly 66.1 percent of the country's Gross Value Added increase." [13].

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