write your opinion on effect of gst on medicinal and agricultured sector
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The GST or the Goods and Services tax replaces a whole set of taxes.
1. Effect on Healthcare - The GST rates have been fixed in a way that the old rates including the MRP, excise, and VAT are same to the new rates. Formulations like tablets, capsules, and syrups have GST rates fixed up to 12%, 5%, and 0%. Contraceptives, blood and its components have 0% GST. Most medicines have a GST of 12%, compared to the previous taxes of 9.5%.
So, the prices of formulations and medicines which have a 12% GST will be increased by almost 2.30% and the prices of medicines which have a 5% GST will be the same as before.
2. Effect on Agriculture sector - GST seems to have a positive impact on the agricultural sector, which is the major contributor to the Indian GDP. Almost all the indirect taxes that have been levied on the agricultural products will be taken over by the GST. An input credit for all the taxes paid will be provided to every trader which will make a transparent and hassle-free supply chain leading to the free transportation of agri-commodities across the country. Due to the implementation of GST, the mechanism of the improved supply chain will reduce the inter-state transportation time. Also, GST is known to have reduced the taxes for the required heavy machinery.
1. Effect on Healthcare - The GST rates have been fixed in a way that the old rates including the MRP, excise, and VAT are same to the new rates. Formulations like tablets, capsules, and syrups have GST rates fixed up to 12%, 5%, and 0%. Contraceptives, blood and its components have 0% GST. Most medicines have a GST of 12%, compared to the previous taxes of 9.5%.
So, the prices of formulations and medicines which have a 12% GST will be increased by almost 2.30% and the prices of medicines which have a 5% GST will be the same as before.
2. Effect on Agriculture sector - GST seems to have a positive impact on the agricultural sector, which is the major contributor to the Indian GDP. Almost all the indirect taxes that have been levied on the agricultural products will be taken over by the GST. An input credit for all the taxes paid will be provided to every trader which will make a transparent and hassle-free supply chain leading to the free transportation of agri-commodities across the country. Due to the implementation of GST, the mechanism of the improved supply chain will reduce the inter-state transportation time. Also, GST is known to have reduced the taxes for the required heavy machinery.
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GST means Goods and Services Tax collected by the Government in a move to supplant the greater part of the indirect taxes. The fundamental thought behind acquainting GST is with enhancing the economy of the country.
GST is a solitary tax assessment framework that will diminish the quantity of indirect taxes. Prior, backhanded duties were charged as focal extract, VAT, benefit assess, and so forth. From now, a solitary tax collection term would cover those backhanded expenses(indirect taxes)
Corruption free tax assessment framework. GST would present corruption free tax collection framework. In the present situation, the tax is imposed at the time of item discharge from the assembling site, and after that retailers additionally, pay it.
Market improvement. GST would not be charged at each point of an offer like other indirect taxes so along these lines, the market would be developed.
GST is a solitary tax assessment framework that will diminish the quantity of indirect taxes. Prior, backhanded duties were charged as focal extract, VAT, benefit assess, and so forth. From now, a solitary tax collection term would cover those backhanded expenses(indirect taxes)
Corruption free tax assessment framework. GST would present corruption free tax collection framework. In the present situation, the tax is imposed at the time of item discharge from the assembling site, and after that retailers additionally, pay it.
Market improvement. GST would not be charged at each point of an offer like other indirect taxes so along these lines, the market would be developed.
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