Good and bad sides of GST
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Hey friend!!!
Good sides:
1). A unified tax system removing a bundle of indirect taxes.
2). Less tax compliance.
3). Removes cascading effects of taxes.
4). Manufacturing costs will be reduced hence cost of consumer goods likely to come down.
5). A unified tax regime will led to less corruption will will indirectly affect the common man.
Bad sides:
1). Services like telecom, banking will become expensive.
2). Being a new tax it will take some time for the people to understand its implications.
3). The actual benefit is not passed to consumer and seller increases his profit margin, the prices of goods can also see a rising trend.
4). It is easier said than done. There are always some complications attached. It is a consumption based tax so in case of services, the place where service is provided needs to be determined.
Hope it helps!!!
Good sides:
1). A unified tax system removing a bundle of indirect taxes.
2). Less tax compliance.
3). Removes cascading effects of taxes.
4). Manufacturing costs will be reduced hence cost of consumer goods likely to come down.
5). A unified tax regime will led to less corruption will will indirectly affect the common man.
Bad sides:
1). Services like telecom, banking will become expensive.
2). Being a new tax it will take some time for the people to understand its implications.
3). The actual benefit is not passed to consumer and seller increases his profit margin, the prices of goods can also see a rising trend.
4). It is easier said than done. There are always some complications attached. It is a consumption based tax so in case of services, the place where service is provided needs to be determined.
Hope it helps!!!
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