GST will act as a major boost to economic efficiency, tax compliance and domestic and foreign investment.
GST is a destination based tax, levied on the consumption of goods and services. GST stands for Goods and Services Tax levied by the Government in a move to replace all of the indirect taxes.
The main idea behind introducing GST is to improve the economy of the nation. A single undivided Indian market would strengthen the economy and make a nation, powerful as well.
There is a lot that is predicted by economic pundits, and there is a lot of dust in the air with regards to the immediate and long-term impact of the GST bill. It's only when the dust settles, one will see where we stand.
However, it can be said with surety that there will be a significant amount of transparency and ease in the taxation process for the tax payer.
There are approx. 140 nations where GST has as of now been actualized. A list of the prominent nations is Australia, Canada, Germany, Japan, and Pakistan, to give some examples. Usage of GST impacts a country both ways, positively and adversely.
The tax administration will work corruption free and with transparency.
Removing cascading tax effect, simpler online procedure under GST, defined treatment for E-commerce and regulating the unorganised sector.
Speaking of expenses, the GST has also considerably increased expenses for accounting firms and small businesses alike in terms of employees. Some small businesses filed their own taxes, and that has become problematic since a lot of people are still not well conversant with the GST, and accounting firms have to employ new people who have been coached in the GST.
Apart from that, the implementation of the new GST-complaint software also translates to additional expenses involved in the training of the existing employees.
All sections of economy viz., big, medium, small scale units, intermediaries, importers, exporters, traders, professionals and consumers shall be directly affected by GST...
One of the biggest taxation reforms in India -- the Goods and Service Tax (GST) -- is all set to integrate State economies and boost overall growth. GST will create a single, unified Indian market to make the economy stronger.
Experts say that GST is likely to improve tax collections and Boost India's economic development by breaking tax barriers between States and integrating India through a uniform tax rate.
Under GST, the taxation burden will be divided equitably between manufacturing and services, through a lower tax rate by increasing the tax base and minimizing exemptions.
GST is levied on all supply of goods and provision of services as well combination thereof. All sectors of economy whether the industry, business including Govt. departments and service sector shall have to bear impact of GST.
- Laxmi Prasad