Question

Essay for 3 standard on impact of gst in India

Answer 1

Positive Effects of GST in India The death of all taxes: With the unified tax regime we said goodbye to a big pile of indirect taxes making India One Nation One Market One Tax country. Now, businesses don’t need to worry about the plethora of taxes. Digitized Process: The whole process is digitized leaving no chance for tax evasion with the help of digitized records of all businesses.



Each business whose annual turnover is over 20 lakhs will have to digitalise their business for transparency in paying taxes and input credit benefits. And with transparency, there will be no hidden taxes making India corruption-free system. GDP Growth: With exemption benefits on some goods and services it will increase production, lessen the prices and equivalently increase the demand helping GDP growth.

More imports and exports will flow generating decent revenue, but according to experts, it will take two years for the economy to be stable. Market Competition: Due to reduced costs in FMCG(Fast moving consumer goods sector) products like biscuits, toothpaste may become cheaper and will be manufactured in high volumes creating competition in the domestic and international market. No filing of Income Tax returns without Aadhaar:

The government has made it compulsory to mention Aadhaar for the filing of income tax return. Without Aadhaar, you won’t be able to file your return after July 1. Linking of Aadhaar with PAN becomes mandatory. The government has also made it compulsory to link Aadhaar with PAN to stop people using multiple PANs to evade taxes.