"A single step of Indian government that is giant leap for Indian people. "
The introduction of Goods and Services Tax on 1st of July 2017 was a significant step in the field of indirect tax reforms in India.
Path-Breaking Move :
It was the biggest tax reform since independence. GST will pave the way for realization of 'one nation-one tax-one market'. We thank Narendra Modi for the path-breaking move in implementing GST.
Turning point :
The launch of GST is indeed a historic turning point for Indian economy. This greatest reform in our taxation shall truly redefine the economic horizons of the nation.
Unified tax policy :
GST has unified 14 different central and state taxes like excise, service tax and VAT to create a uniform rate of tax across the country from the midnight of 30th June 2017.
Advantages of GST :
(i) GST would be applicable on supply of goods or services.
(ii) GST would be based on the principle of destination based consumption taxation.
(iii) It would be a dual GST, with the Center and the States simultaneously levying it on a common base.
(iv) An integrated GST would be levied on interstate supply of goods or services.
(v) Import of goods would be treated as interstate supplies.
(vi) GST would replace the following taxes which were currently levied and collected by the Center :
(a) Central excise duty
(b) Duties of excise (medicinal and toilet preparations)
(c) Additional duties of excise
(d) Additional duties of customs
(e) Service tax
(f) Ceases and surcharges
(vii) It will lead to accelerated development of common national market.
(viii) There will be online simpler procedure under GST.
State taxes coming under GST :
(i) State VAT
(ii) Sales tax
(iii) Purchase tax
(iv) Luxury tax
(v) Entry tax
(vi) Entertainment tax
(vii) Taxes on advertisements
(viii) Taxes on lotteries, betting and gambling
(ix) States ceases and surcharges insofar as they relate to supply of goods and services.
Average tax burden on companies is likely to come down which is expected to reduce prices, and lower prices mean more consumption. This is the greatest GST benefit to consumers.
Disadvantages of GST :
1. Extra Programming Cost
Most organizations use ERP or bookkeeping programming to deal with their everyday tasks. These arrangements were created according to the customary assessment regulations in the country. The execution of GST expected the organizations to change to GST-agreeable arrangements or independent GST programming to stay aware of the new duty regulations.
2. Online Assessment System
GST is a web-based charge framework. From GST enrollment to recording GST returns, each part of this new assessment system is done on the web. While organizations are continuously moving to computerized arrangements, independent ventures are as yet not very knowledgeable with such current innovations and arrangements.
3. Higher Duties for SMEs
Assuming that you are searching for what are the burdens of GST, you will go over how it has expanded the expense liabilities for little and medium undertakings (SMEs). This is on the grounds that, before, the exact charge was just paid by organizations with a yearly turnover of above Rs. 1.5 crores. In any case, with the new assessment system, any business with a yearly turnover of above Rs. 20 lakhs is expected to pay GST.
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