Abstract

he caselet focuses on the Value Added Tax (VAT) system and its introduction in India. It shows how VAT is implemented in different countries. It also discusses the stand of traders and state governments in India on the implementation of VAT and how the finance ministry managed to bring about a consensus among the states to implement VAT.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Issues related to the introduction of Value Added Tax (VAT) system in India
• The replacement of the Central Sales Tax
• and Concerns of traders and the state governments with regard to implementation of VAT.

Keywords

Value Added Tax (VAT), uniform state-level tax, indirect taxes, Indirect Taxation Enquiry Committee, Modified Value Added Tax (MODVAT), Cenvat (Central Value Added Tax), Indian Constitution, Central Sales Tax (CST), empowered committee of state finance ministers, multiple tax regime