Analysis of GST on corporate Governance in India

Taxation system is as old as the human civilisation. This has evolved over the ages and Chanakya’s Arthashastra is the famous treatise on the subject of the ancient times. However, with the regular evolution of the economic activities combined with adoption of different forms of administration the taxation systems were bound to change. The further evolution came with the scientific discoveries, expansion of economic activities, growth of population, improvisation of production systems among others. The present paper aspires to look into the acceptance and success of the GST system. It tries to look into the different factors which are bound to judge the effects that try to mould the overall GST implementation mechanisms. The most awaited frontier GST viz. Goods and Services Tax has finally arrived. Nevertheless the pitch work is still in early stages and the final landing is proposed effectively from 1st April 2017. There is a lot of ground work which has to be done, so that the teething troubles can be minimized and the GST can be implemented with full punch. Earlier, distinct taxes or duties were imposed on the basis of various mind-numbing concepts of manufacturing cost, value addition/subtraction, origin, territorial issues etc. There have been umpteen committees, commissions, amendments etc. in the pre as well as post-independence era of Indian taxation system. With deep plunging into the intricacies of various provisions of different taxation, the GST has ultimately emerged as an umbrella tax, which will embrace mostly all the taxes and duties and be charged as a single unified tax. This study attempts to enlighten on various issues in reference to the origin, evolution and the probable implications of GST regime on corporate governance in general and Indian corporates in specific.