Who will get maximum benefit of GST – common people, Traders, business giants
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Answers
Answer:
All stakeholders - government, manufacturers, traders and majorly consumers will benefit. But we all know someone’s gain is someone’s else loss. So who stands to loose ?
It is those individuals and companies who have been minting black money by escaping both direct and indirect taxes by running the entire business chain in black money..they will definitely stand to loose..their businesses now stand disrupted. Its a great reform to curb their activities and bring them under indirect tax net, and effectively under direct tax net too.
Majority of the players who were anyway compliant earlier now stand to gain for 3 key reasons :
They now get credits for all inputs that use to manufacture products (which was not the case earlier with a complex and multi-tax incidence structure).
New regime would also reduce compliance cost substantially in the long run
The simplified regime adds substantially to the ease of doing business in a previously complex webbed taxation system.
These benefits are already being passed on and rather would over time keep getting passed on to the ultimate consumers and government is establishing a machinery to keep a vigil on the manufacturers/ traders to make sure the benefits are being passed on to the common man.
How much the government will loss or gain, we might have to wait and see the expansion of tax net + we equally need to play a role here by discouraging traders to sell without bills. What we don't realize is that every rupee of indirect tax we save by not taking bills, the seller gains not only on the indirect tax , but also manages to avoid direct tax and add to the black money economy.
Hence, Gainers are in the order most to least
Consumers
Manufacturers/ traders who were compliant
Government
Manufacturers/ traders who were non-compliant (losers)
Explanation: