GD TOPIC: GST SUCCESS OR FAILURE?
- August 23, 2018
- Posted by: mdeepak
- Category: Uncategorized
GST is the biggest tax reformation in India, it is the elimination of multiple taxations. The Goods and Service Tax Act was passed in the Parliament on 29th March 2017 and came into effect on 1st July 2017. GST was implemented with the ambition that it will reduce the burden of the multi-tax system. No doubt there are many benefits in GST and GST was one of the biggest step taken by BJP government and government also promoting GST as a revolutionary act by the ruling party. Still, there are many peoples and economist opposing GST. There is both pros and cons in GST, let’s discuss today’s GD topic GST success or failure and conclude.
- GST reduces various indirect taxes running in the current regime, which will make the process of tax collection transparent and easy.
- With the implementation of GST India become a one tax one nation which will attract the foreign investor to invest in our nation.
- With the implementation of GST government can control inflation rate in India now prices of good can be manageable in all parts of India.
- By making a common market, it will remove the state trade barrier. In previous years we have seen that prices of goods are different and their margin is too high in the state to state but now this system can be manageable.
- With the implementation of a single tax system, now tax system is more transparent and essay for both manufacturers and customers.
- After the implementation of GST, more peoples are now in tax radios which reducing corruption in our nation. GST reduces the transaction costs of doing business, which improve the competitiveness of the trade and industry.
- After the implementation of GST, there is a remarkable growth in government tax revenue which. This increased revenue will help to take better steps toward development of India.
- Peoples are confused with the new tax system. GST is complicated and there is more electronic work which is confusing to peoples.
- Now every existing businessman has to change their strategy which is very time taking and may affect the market sell and for manufacturing state, there will be a loss of revenue.
- For GST, implementation tax burden will be higher for Small businesses in the manufacturing sectors.
- Now every manufacturer has to register in every state where their product is selling which will increase the burden on manufacturing companies.
- It will increase the inflation rate in initial days which is may drag GDP growth rate in the negative direction.
- Due to GST now service tax is more expensive. Due to the increase in service common peoples will suffer.
With the elimination of multi-tax system now paying tax is much easier and transparent. Going for a global standard tax regime is very beneficial to the country that has a significant dependence on international relations. Finally Indian economy will benefit due to increase number of taxpayers.
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