The theme is very crucial at this point of confluence where there are different factors that laid great emphasis in indirect tax reform and it was eulogized has one of the biggest every reform in India's Indirect taxes. The acronym for above elucidation is termed has GST which means Goods And Service tax. The above said reform plays a crucial role in improving the collection of taxes and also brought transparency in this complex system.
The Government of India tried its level best in implementing the GST from July 1st 2017, where it had undergone paranoia to bring political consensus among different political parties for implementation. Though the committee was constituted in this regard in 1999 by NDA lead A. B. Vajpayee government but it crossed to took up to until now. The earlier period is termed has uncertainty in indirect tax reform where double taxation was prevalent such has sales tax, octroi tax etc . Because, the manufacturers and sellers ( retail level ) have to pay the money . In order to derive a solution, the Government had brought the new tax reform and after the implementing this modification the ease of doing business was increased.
One among the positive impacts of the GST is that it brought the transparency in the India's indirect tax reform. Moreover, consolidated the various taxes such has sales tax, central excise, VAT and the tax payers are initiated to pay one tax. The GST is protected by the GSTN integrated tax platform to deal with all aspects of GST. The implementation of the new system, has increased the rank of the country in the category of doing business report published by the world bank and positioned itself at 30th rank. It removed the multiple tax system that was replaced with a new one. But, GST has two parts, central GST and state GST. GST is applied only at final point of consumption and now the entire tax regime is corruption free and transparent.
Some of the negative impacts of GST are that the system is claimed to have inflicted damage to the real estate sector and also brought lots of confusion in the market due to the multiple tax slab system. There will be a heavy loss to some states such has Maharashtra, Tamil Nadu etc where the maximum number of companies and factories are present and this would dwindle the amount in indirect taxes. The intention of GST is to have an uniform rate system that was prevalent in all over the world, but contradicting to the presumption it was constituted into five tax slab systems. There were apprehensions among some business sectors such has Gold, textiles etc where implementation of the GST would be hindered for their business because due to surge in the price. The other impacts which it holds is increasing prices of service sector such has banking, telecom, airline etc. It will take some time for the people to get acquainted with the new system that was unleashed in the middle of the year. It is against the ONE NATION ONE TAX where multiple tax slabs are available. There are critics who blasted the government on the GST issue because the economists are claiming that it had slow down the economy .
The Government of India's intention to launch GST is to bring transparency and efficiency in tax administration. It is eulogized by the Government of India has long term reform.
- B.V.KRISHNA REDDY