| As a matter of drastic change in economic paradigm in India, the process of liberalization has been introduced in the year 1990-1991. This step is being treated as gateway to export led growth for the 21st century. The policies aimed at this reform, however by chance factor has with stood the political obstacles. The need for the revamping country's tax system was felt since long due to its complexity in structure and unfairness in actual incidence. The premise holds that relatively lower tax rate would accelerate the pace of tax collection for the Government exchequer and deter the tax evasion. In 1991, the Government of India as a result, constituted a high level committee under the chairmanship of Raja Chelliah (Chelliah Committee) to rationalize indirect taxes and to introduce a modern tax system in the country. |