Goods and Service Tax is a benchmark for 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 are the Impact & Benefits of GST?
Goods and Service tax system is a simplified system to calculate the Tax. The main reason for the Implementation of the GST is the Removal of Cascading Effects ( Tax on Tax). Behind every implementation of the Tax some of the loopholes of GST. Expectations related to the implementation of the GST are a decline in Inflation rates in India and Make the path to Economic Growth. Still, some of the GST Tax rules are not Clearly Specified to taxpayers.
Most of the Indian Economists are analyzed regarding the Inflation Rates that will come down with the implementation of Goods and Service Tax. Some of the Corporate Operations are Disturbed with Implementation of GST. This lead to a High burden on Smaller Firms.
GST Impact On Indian Economy
- GST Removes the Cascading Effects Means Tax on Tax.
- 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 the 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 to Exports.
- GST Will increase the Cost rate of Imported Goods.
- Encourages the producers to take over the ram materials from the different dealers and pay the tax at one time.
- The burden of tax moves 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)
However, Every Advantages of the Tax will be 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 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.
- Fewer Tax rates and Policy for the Current tax Structure.
- Lower Burden for the Common man and Public.
- GST Implementation leads to an increase in demand and consumption of Goods.
- Controls the Black Money Circulations and Maintains the Stability in the taxation system.
- It provides development in the Long Run Period.
- Boost the upcoming Manufacturing Industries.
- Actual tax rates are a mechanism on the Final Consumer.