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

Expanding Eureka!

Abright yellow van with figures of children playing with a whirligig, a Newton’s cradle, a magnetic compass rolls into the Government Higher Primary School in Kittaganahalli, on the outskirts of Bengaluru. Students in the playground leave what they are doing and mill about it in excitement. For they

The spark in the classroom

Not many children dream of starting an idyllic school of their own when they grow up. But Ramji Raghavan, founder of the Agastya International Foundation – which fosters the creative learning of science in stude

Trafficking survivors’ votes don’t count

While the entire nation is agog with political grapevine, political parties are weighing on all options to lure voters by touching upon issues that impact their lives. Several parties, including the BJP and the Congress have released their manifestos while many are about to join the bandwagon. The

“I have a bigger reason and motivation to join politics”

Urmila Matondkar joined the Congress party and within just two months into politics, the actor is already surrounded by controversies – from being accused of making anti-Hindu comments to inappropriate poll campaigning. Fielded against BJP’s Gopal Shetty in the Mumbai North constituency, Ma

Campaign trail with BJP’s Manoj Kotak

Dressed in white shirt and pants, three time Bhartiya Janta Party (BJP) corporator Manoj Kotak is now contesting from Mumbai north-east constituency. Kotak, representing BJP in the BMC, is ready to rally around Ward 125 in Ghatkopar east area. It’s about 7:30 pm on a hot April e

Modi is now the topic of a PhD thesis

Sunil Bhatt, a Gujarat-based professional, has completed what is possibly the first PhD thesis on prime minister Narendra Modi. The thesis, titled ‘Leadership, Governance and Development: A case study of Shri Narendra Modi’, has been accepted at the Veer Narmad South Gujarat Universit



Current Issue

Current Issue

Video

CM Nitish’s convoy attacked in Buxar

Opinion

Facebook    Twitter    Google Plus    Linkedin    Subscribe Newsletter

Twitter