Is GST improving the country's scenario?
by Rajnish Shanker Online gst servicesGoods
and Service Tax has been a new gift to the people by the government. This tax
has certainly helped the government to bring stability in system and finish of
all the illegal practices. The present scenario of the country might have been
disturbed by the GST Service in India but in long
run, it will turn out to be beneficial.
Goods
and Service Tax has finished off all the other taxes. Taxes which were charged
by the restaurants in the name of service tax, VAT all are finished. Now it’s
about CGST and SGST.
The
short-term impact of GST
From
the point of view of the consumer, they would be entitled to pay more tax for
most of the goods and services they use. The greater part of daily consumables
now draws the equivalent or a little higher rate of tax. Furthermore, the
GST completion has a cost of acquiescence attached to it. It seems that this
cost of acquiescence will be exorbitant and high for the small-scale
manufacturers and traders, who have also revolted against the same. They may
end up pricing their goods at high rates.
Expected long-term benefits
Taking into
consideration the long-term benefits, it is anticipated that GST would not just
mean a lower rate of taxes, but also lowest tax slabs. Countries where the
Goods and Service Tax has helped in improving the economy, apply only 2 or 3
rates that is one is the mean rate, a lower rate for necessary commodities, and
a higher tax rate for the lavish goods. Currently, in India, there are 5 slabs,
with as many as 3 rates – an integrated rate, a central rate, and a state rate.
In addition to these, cess is also levied. The fear of losing out on profits
has kept the government from betting on fewer or lower rates. This is very
doubtful to see a move anytime soon; though the government has said that rates
may be revised once the Revenue Neutral Rate is reached.
The impact of GST on
macroeconomic indicators is likely to be very constructive in the medium-term.
Inflation would be abridged as the cascading (tax on tax) result of taxes would
be eradicated. The income from the taxes for the government is probably to
boost with an extended tax net, and the fiscal deficit is predictable to remain
under the checks. Moreover, the exports would increase.
Thus
it is believed that GST Services India will be a
beneficial policy for the long run
Sponsor Ads
Created on Dec 1st 2017 04:06. Viewed 320 times.