Constitutional Framework around Fiscal Policy in India

The overarching framework for India’s fiscal policy is provided by the constitution. This framework is made of: Article 246, Article 248 (residuary power of taxation) and Seventh Schedule Article 280 provision for Finance Commission Article 112 and other articles related ..

Objectives and Instruments of Fiscal Policy

The word fiscal comes from a French word Fisc, which means treasure of Government. All the taxation and expenditure decisions of the government comprise the Fiscal Policy. Fiscal Policy is different from monetary policy in the sense that monetary policy ..

Current Challenges to Implementation of GST

Currently, challenges to implementation of GST are as follows: Enactment of Constitution amendment bill needs consensus among ruling and opposition parties because ruling party is in minority in Rajya Sabha. Setting up IT infrastructure and an enabled centralised agency to ..

Implications of GST on Indian Economy

Till now, introduction of Value Added Tax (VAT) at the state level and CENVAT at central level are considered to be largest indirect tax reforms in the country and GST is the next logical step towards making India a unified ..

GST and Concept of Supply of Goods

Under GST, the definition of goods has been replaced with the “supply of goods”. Under the present indirect tax regime in India various central and state levies are triggered by distinct taxes like service tax provision of services, VAT on ..

Implications of GST as a Destination Based Tax

Indirect taxes can be either origin based or destination based. Origin based tax (also known as production tax) is levied where goods or services are produced. Destination based tax (consumption tax) are levied where goods and services are consumed. In ..

GST Council

The GST bill seeks to set up a GST Council. The GST Council aims to develop a harmonized national market of goods and services. According the GST Bill, the President must constitute a GST Council within sixty days of this ..

Goods and Service Tax Network

A robust IT infrastructure is prerequisite to successful implementation of GST. The current status is as follows: For central taxes, the IT infrastructure is managed by the NIC and all the returns are filed through the ACES site. For states, ..