Debate in favour of the GST in English
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The Goods and Service Tax is a system of taxation where there is a single tax in the economy for goods as well as services. This is meant to bring together the state economies and create a single taxation system in the entire country for all goods and services. It is based on a tax-on-value-add concept which avoids duplication of taxes.The GST when introduced can eliminate all the indirect taxes.
The GST is worldwide accepted system. France is the first country that introduced this. GST is considered for the goods sold as well as for the services provided. The assumed rate of GST is about 16%-17%.This is much lesser when compared with the current rate of taxation. According to the current tax pattern, the tax rates about 35%-40%
When GST is introduced the price of a product will become reduced. A fall in price generally increases the product demand. Not only the price reduces but also the working capital too. GST makes the price of a product unique throughout the country.The concept of warehouse changes when GST is introduced. In the present tax system a ware house is required for each state. If the dealer and the ware house are in different states, then the dealer needs to pay a Central Sales Tax of about 2%.This increases the price of the commodity. Thus companies use to setup a warehouse in each state. In GST as the CST gets eliminated, the number of warehouses can get reduced.
GST is not much complicated as the current tax pattern which involves the calculation as well as the tabulation of various indirect taxes. This can also reduce much paperwork.
There won’t be any GST charged on the Goods with the exempt category, 1% on bullion and a reduced rate for the essential item. The GST is a welcomed tax pattern as it can reduce the price of the Goods increasing the consumption and finally increases the production.
Multiple taxes that currently exist will no longer remain in the picture. This means that taxes like octroi, CENVAT, central sales tax, state sales tax, entry tax, license fees, turnover tax etc will no longer be present and all that will be brought under the GST.
The GST is worldwide accepted system. France is the first country that introduced this. GST is considered for the goods sold as well as for the services provided. The assumed rate of GST is about 16%-17%.This is much lesser when compared with the current rate of taxation. According to the current tax pattern, the tax rates about 35%-40%
When GST is introduced the price of a product will become reduced. A fall in price generally increases the product demand. Not only the price reduces but also the working capital too. GST makes the price of a product unique throughout the country.The concept of warehouse changes when GST is introduced. In the present tax system a ware house is required for each state. If the dealer and the ware house are in different states, then the dealer needs to pay a Central Sales Tax of about 2%.This increases the price of the commodity. Thus companies use to setup a warehouse in each state. In GST as the CST gets eliminated, the number of warehouses can get reduced.
GST is not much complicated as the current tax pattern which involves the calculation as well as the tabulation of various indirect taxes. This can also reduce much paperwork.
There won’t be any GST charged on the Goods with the exempt category, 1% on bullion and a reduced rate for the essential item. The GST is a welcomed tax pattern as it can reduce the price of the Goods increasing the consumption and finally increases the production.
Multiple taxes that currently exist will no longer remain in the picture. This means that taxes like octroi, CENVAT, central sales tax, state sales tax, entry tax, license fees, turnover tax etc will no longer be present and all that will be brought under the GST.
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