GST : 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.
The Introduction of GST in the country has both the positive and the negative impact.
LET US FIRST FOCUS ON THE POSITIVE IMPACT OF GOODS & SERVICES TAX:
- GST is a single taxation system that will reduce the number of indirect taxes. Earlier, indirect taxes were charged as central excise, VAT, service tax, etc. From now, a single taxation term would cover all of those indirect taxes.
- The Prices of products and services would reduce so this system would prove to be beneficial for the people who are fed up of paying huge prices.
- This would reduce the burden from the state and the central government. Presently separate taxes are levied on goods and services that you produce. With the introduction of GST, all of these indirect taxes would come under a single roof.
- Market development. GST would not be charged at every point of sale like other indirect taxes so this way, market would be developed.
- Corruption-free taxation system. GST would introduce corruption-free taxation system. In the present scenario, the tax is levied at the time of product release from the manufacturing site, and after that retailers also pay it.
- Positive impact on the Central and the State level :According to the latest reports, the introduction of GST would help India to gain $15 billion every year.
- Let us see how:
- Improved exports
- More opportunities for employment
- Enhanced economy growth
- Reduced burden on central and state government.
MOVING ON TO NEGATIVE IMPACT OF GOODS & SERVICES TAX:
- According to many economists, the introduction of GST in the country would impact real estate market. This would increase new home buying price by 8% and reduce buyers’ market by 12%.
- GST levied by the government as CGST for central, SGST for state government are nothing but fantasy terms representing older terms Service Tax, CST, and VAT in a new way.
- GST is a confusing term where double tax is charged in the name of a single taxation system.
- Most of the indirect taxes would now start coming under GST. The Central excise tax is levied at the time of Manufacturing but GST is levied till the selling stage.
- Most of the dealers don’t pay central excise tax and cheat the government by simply paying the VAT. But all of those dealers would be forced to pay GST.
There are approx. 140 countries where GST has already been implemented. Some of the popular countries being Australia, Canada,Germany, Japan, and Pakistan, to name a few. Implementation of GST impacts a nation both ways, positively and negatively. Ignoring negative aspects, positive aspects can be taken into consideration, in order to improve the economy of the country.