About GST

What is GST:-(One tax one nation)

Goods and Services Tax bill is India’s biggest reform in India’s indirect tax structure. The purpose of the bill is to introduce one single tax on supply of goods and services, from the manufacturing stage until its delivery to the final consumer. The final consumer of the goods and/or services will only have to bear the GST charged by the final dealer in the supply chain, and avail set-off benefits at all the previous stages. This means interim tax stages such as excise duties and service tax and state levies like VAT will be absorbed under GST.

 Benifits of GST:-

The introduction of GST bill will help in simplifying administration as it removes multiple taxation systems at every stage of trade model and removes disturbances in production. It also aims towards providing a uniform tax rate for all goods and services. The manufacturers will be benefited by the tax regime as it will reduce the tax that levied on them. A system of seamless tax-credits will lead to minimal cascading of taxes, thus reducing hidden costs during trade. 

Is GST going to benefit people below the poverty line?

With respect to those living below the poverty line, there might not be a direct impact of the GST on them as such since basic necessities like food are unlikely to attract the GST but increased collections of the GST with a larger tax base should provide an impetus to the government to allocate more money for social and poverty alleviation programmes. Thus, the GST should benefit all sections of the society. Additionally, the GST, being a nationwide tax, could lead to possibly higher inflation in the first few years of its introduction but would gradually increase the overall GDP.

Negative Impact of GST :

• Services will become expensive.e.g.Telecom,banking,airline etc.
• Being a new tax,it will take some time for the people to understand its implications.
• It is easier said than done.There are always some complications attached. It is a consumption based tax,so in case of services the place where service is provided needs to be determined.
• If actual benefit is not passed to consumer and seller increases his profit margin,the prices of goods can also see a rising trend.

However,GST is a long term strategy and the positive impact shall be seen in the long run only.

Let us hope GST proves to be a game changer in a positive way and proves to be beneficial to the common man.

 

 These are the things which are going to be cheaper and the things which are going to be expensive.

Lets see GST changes the game or  going to fail.