Gst and its impact 200 word essay in english 12th class
Answers
GST:
The recently implemented GST (Goods and Services Tax) by the Indian Finance Ministry was a revolutionary step in the direction of bringing more transparency into the Indian Taxation and Revenue Department. Any new change introduced in any system is received with reluctance by many people. Similarly, there were different responses to GST. However, the Government implemented it with the purpose of bringing uniformity and transparency in the taxation system in the country. GST has many advantages. It will reduce number of indirect taxes. There will also be no hidden taxes, which will lower the cost of production. It will make the taxation system corruption free.
Technically, GST is good for all. It will help the nation to achieve its economical and developmental goals faster. There are many advanced countries in the world where GST is used. We should all welcome this new change which has been implemented with the purpose of ending corruption in our country. Initially there will be some people and political parties that will raise hue and cry opposing the GST implementation, however soon the entire nation, especially the poor people will reap many benefits of this implementation. Evaluating the Impact of GST objectively, it can be concluded that it is not costlier at all for the national interests.
IMPACT OF GST:
Major Benefits to the Economy As A Whole:
• The present scenario of differing tax rates in different states obstructs cooperative federalism.
GST will bring uniformity and also deplete the cascading consequence of these taxes by giving input tax credit, having a comprehensive tax inclusion with minimum exceptions which will in turn help the Industry to benefit from the proposed common procedures and claim credit for the tax paid.
• GST is expected to increase the mobilization of resources available for property alleviation and development of the country as pointed out by the Prime Minister, Narendra Modi.
This will take place in two ways: (a) directly the resources available to the poorer states will increase substantially; (b) indirectly as the tax base becomes more buoyant.
• The common base and common rates across goods and services and very similar rates across Centre and States will result in effective administration and increase compliance while also ensuring the better management of taxes collected in the State.
Also, there is a provision to maintain the requisite fiscal autonomy to the States with the power to levy additional excise taxes on certain “sin” goods like, tobacco, alcohol, etc.
• The complicated tax-levy system categorized by distortions between States and Cente which divides the country into separate economic zones with the help of GST will become one common national market.
This impedes the Make in India process which will get a boost through GST as it is making tax compliance easier and removing ambiguity and at the same time as GST will be applied on imports, domestic manufacturing would be encouraged.
• Tax Governance will get a positive boost through this regime, mainly, through the feature of input tax credit.
To claim input tax credit, each dealer has an incentive to request documentation from the dealer behind him in the tax chain which will ensure tax compliance. Also this would further require producers to buy materials from registered dealers and therefore will bring in more and more vendors in the taxation net.
Furthermore, the dual monitoring structure of the GST by both Centre and State will make tax evasion more prone to detection.
• There will be reduction in prices of goods as taxes would now be exempted from the production cost and at the same time it will put better goods and services within the reach of a larger number of the populace and as such increase the living standards of the country.
• The successful implementation of GST would give a strong signal to the foreign investors about India’s increased creditworthiness, lesser compliance and procedural costs in the taxation sphere and remove the complexities faced by the foreign investors who were reluctant to invest in consonance with the existence of virtual economic zones throughout the country.
The expenses of any government runs on the incomes from the taxation system.
In the Indian taxation system the GST or the Goods and Service tax system brought a huge revolution.
It decreased the non tax payers due to it's mandatory rules which we all have to follow.
And it also increased the government income which can now be used in different development works.