Pros and Cons of Goods and Services Tax
In a major help to small taxpayers, Center has facilitated the GST consistence trouble. After years long buzz, the Goods and Services Tax (GST) was rolled out in a special midnight session on June 30, 2017. From that point forward, concerns have been raised with respect to the GST implementation. In an official statement issued by CBEC, it has been expressed: “Government is aware of the worries of citizens, particularly the small taxpayers, emerging from the transition to the GST administration from first of July, 2017.”
GST is a solitary expense on the supply of merchandise and enterprises, appropriate from the manufacturer to the buyer. Credits of info charges paid at each stage will be accessible in the consequent phase of significant worth expansion, which makes GST basically a duty just on esteem expansion at each stage. The final customer will thus only bear just the GST charged by the last dealer in the supply network, with set-off advantages at all the past stages.
GST is a new reform in India. It has replaced much tax like service tax, luxury tax, entertainment tax etc. It will fuel inflation for the short term but it has positive results in long-term basis.
Pros of Goods and Service Tax
- It lowers the taxes.
- Easy and simple taxation process.
- Eliminate the evasion of tax and boost the centre and state revenues.
- The manufacture goods cost will be low.
- It will encourage domestic and foreign investment.
- It will increase the efficiency of logistic.
- It will create the transparent economy.
- Gain to Manufacturers and Exporters
- Uniform of tax rates ad structure
Cons of Goods and Service Tax
- Not consumer friendly.
- People especially from the small town are finding it a difficult process.
Good and Services tax has replaced 17 indirect taxes. Now there is single taxation in all over India. GST is implemented to boost the economy of India.