Question

How is GST important for poor?

Answer 1

With the introduction of GST, the prices of many basic amenities including (but not limited to) milk, bread, pulses, rice, unpacked food grains, gur, eggs and salt will come down. These things are amongst the most important for survival and more often than not, we the young generation from the privileged society take these for granted. i this it will helpful for poors

Answer 2

The Goods and Services Tax(GST) is a value added tax that will replace all the indirect taxes levied on goods and services by the government,both central and states,once it is implemented.

The basic idea of this bill is to create a single, cooperative and undivided Indian market to make the economy stronger and powerful.

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Pros of GST bill :

GST is a transparent tax and also reduce number of indirect taxes.With GST implemented a business premises can show the tax applied in the sales invoice.GST will not be a cost to registered retailers therefore there will be no hidden taxes andand the cost of doing business will be lower.Benefit people as prices will come downwhich in turn will help companies as consumption will increase.There is no doubt that in production and distribution of goods, services are increasingly used or consumed and vice versa. Separate taxes for goods and services, which is the present taxation system, requires division of transaction values into value of goods and services for taxation, leading to greater complications, administration, including compliances costs. In the GST system, when all the taxes are integrated, it would make possible the taxation burden to be split equitably between manufacturing and services.GST will be levied only at the final destination of consumption based on VAT principle and not at various points (from manufacturing to retail outlets). This will help in removing economic distortions and bring about development of a common national market.It will also help to build a transparent and corruption free tax administration.Presently, a tax is levied on when a finished product moves out from a factory, which is paid by the manufacturer, and it is again levied at the retail outlet when sold.

Benefit of GST for the Centre and the States
According to experts, by implementing the GST, India will gain $15 billion a year. This is because, it will promote more exports, create more employment opportunities and boost growth. It will divide the burden of tax between manufacturing and services.

Benefit of GST for individuals and companies
In the GST system, taxes for both Centre and State will be collected at the point of sale. Both will be charged on the manufacturing cost. Individuals will be benefited by this as prices are likely to come down and lower prices mean more consumption, and more consumption means more production, thereby helping in the growth of the companies.

Some of Disadvantages/Cons of GST in India are given below

• Some Economist say that GST in India would impact negatively on the real estate market. It would add up to 8 percent to the cost of new homes and reduce demand by about 12 percent.

•Some Economist says that CGST(Central GST), SGST(State GST) are nothing but new names for Central Excise/Service Tax, VAT and CST.

Almost 140 countries have already implemented the GST including Australia, Canada,Germany,Japan and Pakistan.