what are the benefits of GST to the government?
Answers
GST is a transparent tax and also reduce number of indirect taxes.
GST will not be a cost to registered retailers therefore there will be no hidden taxes and and the cost of doing business will be lower.
Benefit people as prices will come down which 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.
GST 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.
GST is backed by the GSTN, which is a fully integrated tax platform to deal with all aspects of GST.
GST Disadvantages
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 Experts says that CGST(Central GST), SGST(State GST) are nothing but new names for Central Excise/Service Tax, VAT and CST. Hence, there is no major reduction in the number of tax layers.
Some retail products currently have only four percent tax on them. After GST, garments and clothes could become more expensive.
The aviation industry would be affected. Service taxes on airfares currently range from six to nine percent. With GST, this rate will surpass fifteen percent and effectively double the tax rate.
Adoption and migration to the new GST system would involve teething troubles and learning for the entire ecosystem.
For the Common Man – Items Expected to Get Cheaper
The following things/items are expected to become cheaper under GST for the common man:
Prices of movie tickets may become cheaper in most states
Dining in restaurants
Two-wheelers
Entry-level sedan (except small cars)
SUVs and luxury or premium cars
Televisions
Washing machines
Stoves
For the Common Man – Items Expected to Get Costlier
The following things/items are expected to become costlier under GST for the common man:
Mobile bills
Renewal premium for life insurance policies
Banking and investment management services
Basic luxuries for a common man like WIFI and DTH services, online booking of tickets may become costlier.
Residential rent
Health care
School fees
Courier services
Commuting by metro or rail may become expensive.
Reply
commentimage
Ajith
A
because of efficiency gains and prevention of leakages , the overall tax burden on most commodities will come down, which will benefit consumers. if G. S. T. manges to increase the revenue of government . we can expect a lower rate on direct taxes. these were the benefits of G. S. T......
mark it brainliest