Question

write an essay on the impact of GST

Answer 1

we all know that Sri Narendra Modi our pm of India has launched a new scheme gst which means goods and services tax recently in 2017.this changed a lot of in our country India India is a country having a lot of black marketing but now by the spread of gst in India black marketing is destroyed somewhat.the shopkeepers is somewhat facing problems by this but it is ok because it is beneficial for our country as it reduced the level of blackmarket

Answer 2

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.