ABSTRACTWith variables. The new tax regime has resulted

ABSTRACTWith the 101st Constitution (Amendment) Act, 2017 passed, the GST was adopted on 1st July, 2017. The GST has replaced the existing indirect taxes and is levied on each point of sale. The objective of the study is to analyse the short term and long term effects on different macroeconomic variables. The new tax regime has resulted in different positive or negative effects on trade and commerce. The implementation of GST has led to a temporary bewilderment in the markets and it is very important to understand the effects of GST on Gross Value Added, employment rate, General Price Level, etc. The study uses secondary data from various reports of Government of India and other news sources. Keywords: indirect taxes, GST, GNP, Kelkar Committee, GST council, destination based tax.INTRODUCTIONThe tax is a major source of public revenue. The main features of taxation are that, they are the compulsory payments made by an individual or entity to the administrators for carrying out their socio-economic functions. The indirect taxes among the different kinds of taxes, cover a wider range of tax base. The changes in aggregate demand depends on the rate of taxation and the structure of tax system and so the economic growth. More complex and and unclear the tax system is, greater are the chances of tax evasion and inadequate revenue generation. This complexity also affects the ease of doing business. A economic, transparent and simple system is thus promised by the Government of India through the implementation of GST.The Goods and Service Tax (GST) is a destination based tax incorporates all the other existing indirect taxes. The burden lies with the final consumer. Introduction of GST has brought in a comprehensive single tax structure for the economy. GST has helped to reduce the complexity of multiple tax regime that existed in India. The implementation of GST by the Government of India has led to a situation of confusion for a common man as the new amendment is not yet familiar to the public.The GST rates are based on the classification of goods and services. 0%, 5%, 12%, 18% and 28% are the major slabs of GST. The new system has discarded all the offline payment systems compulsorily, hence the small scale sector and the illiterate and older population sections are finding it difficult to adopt it.REVIEW OF LITERATUREReview of Literature refers to the evaluation of the already existing findings related to the topic in question. The following reviews list the findings and opinions on the concept of GST and its implications by different researchers.  Ahmad E. & Poddar S. (2009), GST reforms and intergovernmental Considerations in India, have studied in detail about the limitations of the previous tax system and the need of the tax reform. They have also gave the means of improving the tax system and the methods of administering them.Anbarasi A. & Rakshitha V. (2015), GST in India: A SWOT Analysis, have studied the scope of GST, its expected workable pattern. Through the SWOT analysis they have concluded that the GST will prove to be an efficient and transparent system also will help to remove the distortions in the economy.Singh S. (2017), GST (Goods and Service tax) Its Impact on Indian Economy, analysis the effects of GST on the prices in various sector. According to the studies some of the goods and services will become cheaper while for some other goods and services the prices will rise. The paper also identifies the threat of reduced revenues of the States.Gupta N. (2014), Goods and Service Tax: Its Impact on Indian Economy, the study along with the analysis of the previous tax system and the GST regime has highlighted the benefits of  GST. Kumawat, Paliwal (2015), Emergence of goods and services tax (GST) in India, have discussed the features and various implications of GST. The paper studies the single tax system in details.   Jangra A., & Narwal K. (2014), Application of CGE models in GST: A literature review, have studied 21 research papers published from 1989 to 2012. The study of modern version of Walraisian model highlights the welfare aspect of the GST.Jasmine V. (2017), GST & Evolution of Tax System in India, focuses on the working of the GST in India with a simple example. The paper studies in detail about the features of GST , its impacts and also gives suggestions to overcome the challenges faced in the adoption of the new system.The above mentioned research papers conclude that the GST is a efficient and transparent indirect tax system as compared to the previous multi tax system. They have highlighted its advantages and also suggested measures to correct the difficulties in the implementations of GST.RESEARCH METHODOLOGYThe study uses secondary data to understand the concept of GST, its features and the implications on macroeconomic variables such as national income, employment, ease of doing business, Industrial Production Index, general price level, etc. The study has analysed the data from various publications and reports of Government of India and other publishers.OBJECTIVES OF THE STUDYTo understand the concept of GST.To study the Phases of implementation of GSTTo study the impacts of GST on various macroeconomic variables in long run and short run.To analyse recent developments in the economy after the implementation of GST.LIMITATIONS OF THE STUDY HISTORY OF GSTThe concept of GST was first introduced by a German economist in 18th century. The first country to adopt the GST regime is France. It is one of the most important and biggest fiscal reform in India since 1947. The GST is not a new concept in India, in fact it has its roots back in 1999-2000 when the first committee for drafting of GST law was set up by the then PM Mr. Atal Bihari Vajpayee. The Taskforce on the implementation of FRBM Act, 2003 headed by Vijay Kelkar envisaged the idea of implementing GST to achieve a wider tax base and improve the revenue collection in 2004.In 2005 the then Finance Minister P. Chidambaram spoke on the topic of GST in the budget session for the first time and then in 2006 he declared deadline of 1st April, 2010 for implementing GST. In November 2009, the discussion paper of the GSt Committee was put forward for public debate and inputs from society. The Constitution Amendment Bill for implementation of GST was then introduced in 2010 as the proposed tax required alteration in the powers of Central as well as State governments. After the continuous discussions the Standing Committee suggested Amendments in the bill in August,2013. After the new government came to power in 2014, the bill was introduced as 122nd Constitutional Amendment Bill, but was rejected by Rajyasabha in 2015. After introducing the required changes the 101st Constitution (Amendment) Act, 2017 was passed in August,2017 and GST was adopted on 1st July, 2017.RECENT TRENDSThe Goods and Services Tax (GST), the landmark tax reform to be implemented from 1 July, would help raise India GDP growth rate to above 8%, the International Monetary Fund (IMF) has said