India is facing multiple problems regarding taxation as tax evasion, black marketing, high price charge and corruption. Meanwhile indirect taxes paid by the producing firms are collected on level may be or may not be timely and honestly deposited to the department. There is a big issue
of multiple tax system and the complex procedure. To get rid of these problems, a uniform tax system named as Goods and Service Tax (GST) was introduced. The current article is proposed to measure the effectiveness of GST as well as tries to analysis the effect of GST on Indian economic system
especially in inflation rate and on foreign trade. Some suggestions are also proposed for make more effective system in India.
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