Here’s why GST is expected to be a game changer

GST is the largest tax reform in India

GN Bureau | June 30, 2017


#GST   #Goods and Services Tax   #RBI   #Reserve Bank of India   #tax laws  


The Goods and Services Tax (GST) is expected to be a game changer.
 
According to the RBI, GST is the largest tax reform in India, paving the way for a single national market by merging several central and state taxes
 
Listed below are some of the benefits of GST:
 
Easy compliance: a robust and comprehensive information technology (IT) platform and seamless transfer of input tax credit from one stage to another in the value chain would incentivise tax compliance.
 
Uniformity of rates and structure: GST will ensure that tax rates and structure are common across the country, thereby increasing certainty and ease of doing business.
 
Removal of cascading: seamless tax credits throughout the value-chain and across states would ensure minimal cascading of taxes, thus reducing hidden costs of doing business.
 
Reducing compliance cost: The uniformity in tax rates and procedures across the country will economise on compliance cost.
 
Gain to manufacturers and exporters: the subsuming of major taxes in GST and reduction in transaction costs would lower the cost of locally manufactured goods and services and increase India’s export competitiveness.
 
Improve tax administration: with a robust user-friendly IT system in the form of the Goods and Services Tax Network (GSTN) portal, GST would be simpler and easier to administer.
 
Higher revenue: GST is expected to reduce the cost of collection of tax revenues and improve revenue buoyancy.
 
Single and transparent tax: there would be only one tax from the manufacturer to the consumer leading to greater tax transparency.
 
Relief from tax burden: efficiency gains and prevention of leakages will benefit consumers with a reduction in the overall tax burden estimated to be around 25-30 percent.
 

Comments

 

Other News

How foreign policy has been Modi’s focus right from the start

The Midway Battle: Modi’s Roller-coaster Second Term By Gautam Chintamani Bloomsbury / 400 pages / Rs 699 Gautam Chintamani, a film historian and author, has penned an in-depth chronicle of prime minister Narendra Modi’s second

Remove unauthorized constructions without pressure: Thackeray to BMC

Maharashtra chief minister Uddhav Thackeray has instructed the Mumbai civic authorities to take immediate action on unauthorized constructions on war footing. In a virtual meeting held on Wednesday, Thackeray said no illegal construction will be tolerated in Mumbai and called upon the BMC to

Covid norms relaxed; Mumbai restaurants, shops to remain open longer

After extending timings of shops and restaurants as well as the reopening of cinema halls and theatres under specified SOPs from October 22, in view of the festive cheer, the Maharashtra government has allowed restaurants and eateries to remain open till 12AM and shops and establishments to function till 1

Global Hunger Index data collection flawed: Arvind Panagariya

Rubbishing the recently released Global Hunger Index 2021, wherein India has slipped to 101 position to be placed below Pakistan, Nepal and Bangladesh, Arvind Panagariya, professor of economics at Columbia University and former vice chairman, NITI Aayog, has said that data collection and methodologies used

‘Blue Zones’ concept of healthy living and its relevance in India

A long life span free from diseases and disability, the so-called healthy aging, has been a matter of prime interest to humanity. It is widely held that the life expectancy is a function of interplay between various genetic and environmental factors. There is scientific evidence to support the fact that on

Motilal Nehru too had petitioned for release of his son: Vikram Sampath

Defence minister Rajnath Singh’s statement, that Mahatma Gandhi had asked V.D. Savarkar to file a mercy petition before the British, has ignited a debate. Vikram Sampath, a historian and author of a recent biography of Savarkar, says two weeks after Jawaharlal Nehru was lodged in Nabha jail, his

Visionary Talk with Dr Arvind Panagariya, Professor, Columbia University & Former VC, NITI Aayog



Archives

Current Issue

Opinion

Facebook    Twitter    Google Plus    Linkedin    Subscribe Newsletter

Twitter