WHAT IS GST?

GST or Goods and Service Tax  is common tax system proposed by the government. As the name suggest it is a common tax for Goods and Services. In simple words today we are paying multiple taxes such excise duty, custom duty, value added tax, octroi, service tax etc. Once GST is implemented all these taxes will be replaced by a single tax which is called as GST. GST rate is expected to be 18-20% which is lesser than tax burden of indirect taxes  and  it is the biggest tax reform since Independence which our Government of India a taken a big step on it 

 

 

BENEFITS OF GST

Elimination of Multiple Taxes

The biggest benefit of GST is an elimination of multiple indirect taxes. All taxes that currently exist will not be in picture. This means current taxes like excise, octroi, sales tax, CENVAT, Service tax, turnover tax etc will not be applicable and all that will fall under common tax called as GST.

Saving more Money

For a common man, GST applicability means the elimination of double charging in the system. This will reduce the price of goods and services & help common man for saving more money.

It is expected that price of FMCG products, small cars, cinema tickets, electrical wires etc is expected to reduce.

Ease of business

GST will bring one country one tax concept. This will prevent unhealthy competition among states. It will be beneficial to do interstate business.

Easy Tax Filing and Documentation

For a businessman, GST will be a boon. No multiple taxes means compliance and documentation will be easy. Return filing, tax payment, and refund process will easy and hassle free.

More Employment

As GST will reduce cost of product it is expected that demand of product will increase and to meet the demand, supply has to go up. The requirement of more supply will be addressed by only increasing employment.

Increase in GDP

As demand will grow naturally production will grow and hence it will increase gross domestic product. It is estimated that GDP will grow by 1-2% due to GST.

Reduction in Tax

GST is a single tax which will include various taxes, making the system efficient with very little chances of corruption and Tax Evasion.

Increase in Revenue

GST will replace all 17 indirect taxes with single tax. Increase in product demand will ultimately increase tax revenue for state and central government.

Goods and service tax is a boon for the Indian economy and the common man. It is a welcome step taken by the government.

FOR COMMON MAN – GOOD EXPECTED TO GET CHEAPER

  • DINING IN RESTAURENTS

  • TWO WHEELER

  • SUV AND LUXURY CARS .

  • TELEVISION

  • WASHING MACHINE

  • STOVES

  • ECONOMY AND BUSINESS CLASS AIR TRAVEL

  • FOOD PRODUCTS LIKE RICE,GRAIN,PULSES ETC

  • ESSENTIAL FOOD ITEMS LIKE EDIBLE OIL

  • HEATERS,COOLERS

  • FURNITURE

  • SOAPS

FOR COMMON MAN – GOOD EXPECTED TO GET EXPENSIVE

  • MOBILE TELEPHONE BILLS

  • SMALL CARS

  • INSURANCE PREMIUM ,BANKING ,INVESTMENT

  • WIFI SERVICES , DTH SERVICES

  • ONLINE BOOKING OF BUS,TRAIN AND AIR TICKETS

  • RESIDENTIALS AND COMMERCIAL RENTALS

  • E COMMERCE SHOPPING

  • TOBACCO , COLD DRINKS AND JUNK FOODS

  • BRANDED JEWELLERY

  • HEALTH CARE

  • SCHOOL AND COLLEGE FEE

 

 

 

 

 

 

 

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2,002 Thoughts to “GST (Goods and Service Tax)”

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