Question

conclusion of GST and its impact on GDP​

Answer 1

Answer:

conclusion-

businesses can experience the merits of having a unified tax system and easy input credits...

impact-After GST implementation the export of goods and services will become competitive because of nill effect of cascading effect of taxes on goods and products.

Answer 2

Answer:

• The implementation of the Goods and Services Tax (GST) in India on July 1, 2017, marked a significant milestone in the country's tax reforms. The GST is a comprehensive indirect tax that has replaced various state and central taxes, including the Value Added Tax (VAT), Service Tax, Excise Duty, and others. It aims to streamline the taxation system, reduce tax evasion, and enhance revenue collection for the government.
• The GST has had a positive impact on the Indian economy, particularly on the Gross Domestic Product (GDP). The GST has led to an increase in the ease of doing business and has simplified the taxation system, making it easier for businesses to comply with the tax laws. As a result, it has boosted economic activity and increased revenue collection for the government.
• The GST has also led to an increase in formalization of the economy, as many businesses have been compelled to register themselves to claim input tax credit. This has led to greater accountability and transparency in the business operations, which has led to better compliance with tax laws and higher revenue collection for the government.
• Furthermore, the GST has led to the reduction of cascading effect of taxes, which has lowered the cost of production and increased the competitiveness of Indian products in the international market. This has led to an increase in exports, which has contributed to the growth of the Indian economy.
• Overall, the implementation of GST has had a positive impact on the Indian economy, with a significant increase in GDP growth. According to the Economic Survey 2020-21, the implementation of GST has contributed to an increase in the tax base, reduction in compliance costs, and increased tax buoyancy. As the GST system is still evolving, it is expected to further boost economic growth in the future.