Goods and Service Tax is a bench mark for the Indian Growth. Most of the Countries Successfully Practiced the Goods and Service tax by avoiding the Double Tax Rates. Instead of Maintaining many taxes such as VAT, CST, Service Tax, CAD, SAD and Excise Tax.
What is Impact & Benefits of GST?
Goods and Service tax system is simplied system to calculate the Tax. The Main reason of the Implementation of the GST is Removal of Cascading Effects ( Tax on Tax). Behind every implementations of the Tax some of the loopholes of GST. Expectations related to implementation of the GST is decline Inflation rates in India and Make path to Economic Growth. Still some of the GST Tax rules are not Clearly Specified to tax payers.
Most of the Indian Economists are analysised regarding the Inflation Rates will come down with implementation of Goods and Service Tax. Some of the Corporate Operations are Disturbed with Implementation of GST. This lead to the High burden in the Smaller Firms.
GST Impact On Indian Economy :
- GST Removes the Cascading Effects Means Tax on Tax.
- GST Reduces the Tax Burden for the Producers and removes the Unnecessary Supply Chain Taxation System.
- Different Tax rates are removed by the GST like Toll Tax for Different States, Surcharges ..etc.
- Goods and Service Tax GST add benefits to the Government Revenue.
- GST Provides the Credit system for the tax paid by the Producers in the Goods or Services Chain.
- GST is going to remove the Custom Duties which is applicable on Exports.
- GST Will increase the Cost rate of the Imported Goods.
- Encourages the producers to take over the ram materials from the different dealers and pay the tax at one time.
- Burden of tax move from the Chain System of the selling and Ultimately Customer bears the Burden of Goods and Services Tax.
Advantages of GST (Goods and Service Tax )
The Main Advantages of Goods and Service Tax is remove Cascading Effect, One Rate one Tax, Removal of State wise Tax, No hidden Taxes left .etc. However Every Advantages of the Tax will dominated by the Other Loopholes of Taxation. There is no tax for up to sales turnover of 20 lakhs.
GST Benefits on Indian Economy :
- Remove of the number of taxes such as VAT, CST, Service Tax, CAD, SAD and Excise Duty.
- Reduction in the Manufacturing Cost and maintaining the lower burden of tax to manufacture.
- Remove of Cascading Effect means Tax on Tax.
- Less Tax rates and Policy for the Current tax Structure.
- Lower Burden for the Common man and Public.
- GST Implementation leads to increase in demand and consumption of Goods.
- Controls the Black Money Circulations and Maintains the Stability in the taxation system.
- Provides development in the Long Run Period.
- Boost the upcoming Manufacturing Industries.
- Actual tax rates are mechanism on the Final Consumer.