Emerging Issues in Goods and Services Tax Structure and Contributing Role of Various Taxes Under GST in Surge of Tax Collection in GST Regime in India

Abstract

GST, a gambit tax reformation in the history of the nation assured a flawless, stringent and at ease regulation. The GST was implemented to create more transparent, unified, and efficient taxation system. The introduction of GST aimed to eliminate cascading effect of taxes and create a "One Tax, One Nation, One Market" system, simplifying the taxation landscape across the nation. Ethical concerns surrounding tax evasion and tax avoidance have posed serious challenges to the GST structure. This research paper explores these ethical issues along with other emerging issues within the GST regime.

The ethical dilemmas of tax evasion and avoidance have become increasingly pervasive under the GST framework, with some taxpayers seeking to exploit loopholes and engage in questionable practices to reduce their tax liabilities. This paper analyses the nature and consequences of these ethical concerns, emphasizing the impact on government revenue collection and fair taxation. As per the report of GST council, in first quarter of the FY 2022-23 the average gross GST collection was ₹1.51 lakh crore however in previous financial year it was ₹1.10 lakh crore. GST council has mentioned 37% increase in the GST collection. Revenue of September 2022 is 26% higher than comparison of same month in previous year. After subsuming  there are three main taxes CGST, SGST and IGST. this paper delves into the distinctive functions of CGST, SGST, and IGST within the GST system and their roles in curbing unethical tax practices. These components are crucial in ensuring that taxes are collected appropriately and equitably, thereby reducing the scope for tax evasion and avoidance. This research paper underscores the critical importance of addressing ethical issues within the GST structure and highlights the pivotal roles of CGST, SGST, and IGST in mitigating tax evasion and avoidance to ensure the success of the GST system as a model for ethical taxation and revenue enhancement