GST- Board the Benefits of Single Taxation
What is Goods and Services Tax (GST)? Usually, a number of taxes are there in India than what is GST? GST refers to Goods and Services Tax, being introduced on 1 July 2017 in all over the India. This is a single tax which has replaced multiple different taxes being levied by the Central and State Governments. There is a complete section on “GST” in the 122nd Amendment Bill of the Constitution. Who governed the GST? GST Council governs the GST whose chairman is Arun Jaitley (Finance Minister of India). This is a tax which is levied on the products and services all over the India.
What is State GST and Central GST?
GST has basically two components known as the Central GST (CGST) and State GST (SGST), being levied by the Central and State Governments.
Why was GST established?
One of the major reasons behind the establishment of this GST is to eliminate or subsume the several different indirect taxes being levied at different levels all over India. GST has been introduced as the single tax over the goods and services by replacing numerous different taxes.
What will be the impact of GST on a common man?
The impact of GST may vary from goods to goods. The vendors can still sell their goods at the cheaper rates only if they are availing the subsidy being approved by the State Government. Thus, the impact of GST largely depends on the intervention of State Government.
Is GST helpful in reducing the tax evasion?
Still, it cannot be judged whether the GST will be beneficial for the poor people or not as it may get clarified with the passage of time. According to the reports, the prices of vegetables and fruits have risen after the implementation of GST and people who likely to have their meals at the restaurants may have to pay more. Clothing has become cheaper with the introduction of GST.
Will GST be beneficial for the people below poverty line?
No impact of GST will be there on the people below the poverty line but yes, the government can then contribute more towards the programmes being going on for the welfare of society with the help of more taxes being collected through GST. Thus, it can be stated that GST would be beneficial for almost all the possible sections of the society. It would also increase the overall GDP of the nation within a few years.
What will be the impact of tax deductions on a salaried person after GST?
GST is a kind of indirect tax being collected from the customers who usually purchase a number of manufactured goods and services. Each and every single customer has to pay the tax whether he is employed or not.
Overall, GST is a kind of single taxation system which would provide an ease to the businessmen and has now become a global standard all over the India. GST is a taxation system which will bring a transparent and corruption-free taxation system in India. It would be a business-friendly system for both the consumers as well as for the businessmen.