All you need to know about landmark GST BILL that have potential to change INDIA

The introduction of GST is expected to not only make the tax system simpler but also help increase tax compliance, boost tax revenues, bring transparency and effeciency in taxation system and make exports competitive.

Why is GST important ?

The Goods and Service Tax is a value added tax that will be levied on both goods and services (except for a list of exempted goods and services), at both the Central and state levels (Central GST and State GST respectively). In other words, the single GST will replace multiple taxes like VAT,CST and ST etc.

Indirect taxation like GST had been implemented by 165 nations and india will become 166 nation to implement indirect tax.

What makes GST an important indirect tax reform in india?

1. A Simpler Tax System

As multiple taxation will be eliminated and replaced by a single tax, the tax structure is expected to be much easier and transparent than today. A simple taxation regime will also enhance the ease of doing business, making the manufacturing sector more competitive and saving both money and time. Experts opine that the implementation of GST would push up the GDP by 1%-2%.

2. Increased Tax Revenue

GST’s tax structure will bring about greater tax  revenue.This will ultimately increase the number of tax payers and in turn tax revenues for the government. it will also help achieving fiscal consolidation. Also,  increasing tax revenues is the best alternative to improve the fiscal health of the current Government.

3. Competitive Pricing

As GST eliminates all other forms of indirect taxing, taxes paid by the final consumer will come down in most cases. Lower prices will help in boosting consumption and demand, which will, in turn, be beneficial to companies. The biggest positive is that goods and services will be taxed on a common basis.

4. Boost to Exports

With production costs falling in the domestic market, Indian goods and services will become more price-competitive in foreign markets. This will help exporters, who will now be able to compete with manufacturers abroad.

5. An Unfragmented National Market for Goods and Services

By eliminating barriers such as entry taxes, GST will result in a unified national market for goods and services that will be accessible to the smallest entrepreneur. It could potentially make sourcing, distribution and warehousing of goods easier and faster between the Indian states. Also, as companies will no longer need to pay interstate taxes, implementation of GST will free up capital that they can now use in their business.

With implementation of GST  price of commodities that will increase and decrease !

Though GST is not the solution to all the problems of India’s economy, it is nevertheless a revolutionary and long-pending reform . It is hoped that GST will boost economic growth and jobs, the ease of doing business, and higher tax collection. Even though it may be mostly beneficial, the implementation of GST will pose some challenges in the near-term like increase in price of many commodities and services. nevertheless the weightage of positive outcomes the negaive We hope that such challenges and hurdles, if any, will be soon sorted out as GST will bring great reform in taxation system of india.

#OneNation OneTax

source: google images,the better india