Is gst will bring a major change ?
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GST is most awaited tax reform that is expected to bring radical changes in indirect tax structure in India.
Visible advantages of GST
GST provides following common benefits :
1.Unified market : The GST will cut down the large number of taxes imposed by the Central Government (eg Central VAT,Excise duty,Service Tax,Central Sales Tax on inter-state sale,etc) and State (VAT on sales,entertainment tax,luxury tax,octroi and entry tax levied by municipalities).This would lead to creation of a unified market,which would facilitate seamless movement of goods across states and reduce transaction cost of businesses.
2.Reduce tax evasion : Since the companies in a chain will have to pay tax on value addition instead of underlying value of goods or service,actual tax paid will likely be small and reduce evasion. Also,since credit can be availed against output tax only when input tax has been paid,companies at different stages would be encouraged to pay taxes on inputs.
3.Widen tax base : GST will give credits for all taxes paid earlier in the goods/service chain incentivising tax paying firms to source inputs from registered dealers only.This will bring in additional revenues to the government as unorganised sector, which is not part of value chain,would be drawn into tax net.Besides,states would be allowed to tax services,as opposed to Central Government only,under GST.
Latent advantages of GST
Now comes the real part you all need to know which everyone is not aware of.
It's an astounding fact that Indian truck drivers clock an average of 280 Km per day,much below the world average of 400 Km and far below 700 Km the average truck driver in US does everyday. Is this underperformance related to bad roads or less fancy trucks? Well maybe to an extent but not whole.
The major cause of the underperformance is prevailing archaic laws.
Truck drivers spend 60% of their time off roads negotiating check posts and toll plazas and there are about 650 odd check posts in the country and 11 different types of taxes on the road transport sector.
Since road traffic accounts for 60% of freight traffic in India,slow movement of trucks across states lead to productivity loss. According to a study, If the distance covered goes up by 20% per day, Indian truck productivity would improve by 12%.We can estimate the loss government incurs everyday because of existing laws which is ultimately borne by general public.
Higher productivity would
-cut the need for buffer stocks,
-reduce the loss of perishable goods,
-cut down the need for warehouses, and
-would save so much time and efforts that can be used productively.
Implementation of GST would provide the productivity boost as illustrated above by doing away with different types of taxes and bringing uniformity in tax laws.
With long delay in its implementation,it is expected to be brought into force with enormous planning and can
henceforth, boost the economy as a whole.Fingers are crossed and it's effects will be seen after its implementation only.
Visible advantages of GST
GST provides following common benefits :
1.Unified market : The GST will cut down the large number of taxes imposed by the Central Government (eg Central VAT,Excise duty,Service Tax,Central Sales Tax on inter-state sale,etc) and State (VAT on sales,entertainment tax,luxury tax,octroi and entry tax levied by municipalities).This would lead to creation of a unified market,which would facilitate seamless movement of goods across states and reduce transaction cost of businesses.
2.Reduce tax evasion : Since the companies in a chain will have to pay tax on value addition instead of underlying value of goods or service,actual tax paid will likely be small and reduce evasion. Also,since credit can be availed against output tax only when input tax has been paid,companies at different stages would be encouraged to pay taxes on inputs.
3.Widen tax base : GST will give credits for all taxes paid earlier in the goods/service chain incentivising tax paying firms to source inputs from registered dealers only.This will bring in additional revenues to the government as unorganised sector, which is not part of value chain,would be drawn into tax net.Besides,states would be allowed to tax services,as opposed to Central Government only,under GST.
Latent advantages of GST
Now comes the real part you all need to know which everyone is not aware of.
It's an astounding fact that Indian truck drivers clock an average of 280 Km per day,much below the world average of 400 Km and far below 700 Km the average truck driver in US does everyday. Is this underperformance related to bad roads or less fancy trucks? Well maybe to an extent but not whole.
The major cause of the underperformance is prevailing archaic laws.
Truck drivers spend 60% of their time off roads negotiating check posts and toll plazas and there are about 650 odd check posts in the country and 11 different types of taxes on the road transport sector.
Since road traffic accounts for 60% of freight traffic in India,slow movement of trucks across states lead to productivity loss. According to a study, If the distance covered goes up by 20% per day, Indian truck productivity would improve by 12%.We can estimate the loss government incurs everyday because of existing laws which is ultimately borne by general public.
Higher productivity would
-cut the need for buffer stocks,
-reduce the loss of perishable goods,
-cut down the need for warehouses, and
-would save so much time and efforts that can be used productively.
Implementation of GST would provide the productivity boost as illustrated above by doing away with different types of taxes and bringing uniformity in tax laws.
With long delay in its implementation,it is expected to be brought into force with enormous planning and can
henceforth, boost the economy as a whole.Fingers are crossed and it's effects will be seen after its implementation only.
cordialabhinandKUMAR:
yes u might be right dear,,but IMPLEMENTATION is the ultimate issue otherwise vat was also not bad....
yes my friend... I think you should read about note ban issue in Venezuela... you can easily understand
and please brainliest my answer
I SEE IT IN MY OWN NATION...IMPLEMENTED IN A BADLY WAY....
please brainliest my answer.... it'll help me alot
India is really a great County
HOW SIR?
you'll find the option on top
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