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

On a personal note: DIVINE

An underground rapper who grew up on Mumbai streets, Divine spins his music around his environment and poverty. His breakout single, ‘Meri Gully Mein’, along with fellow rapper Naezy caught Bollywood’s attention. The Hindi film ‘Gully Boy’ is inspired by their lives and gr

The role model for an IAS officer

Anil Swarup, an IAS officer of Uttar Pradesh cadre who retired in 2018, is a model bureaucrat who retained his optimism right till the end of service and exemplified dedication and commitment. His excitement at the opportunities that a job in the IAS provided is evident on every page of his new book publis

Reform of the civil services: At home and away

The question of reform of the civil services has been debated extensively at all levels at least over the last five to six decades after independence. Indeed, it was soon perceived that the Indian Administrative Service (IAS) may not be well equipped to deal with the problems of an emerging developing coun

The greatest challenge for any government

Shouting vengeance at all and sundry while wriggling out of holes of our own making seems to be our very special national characteristic. Some recent instances are illustrative of this attribute. A number of business tycoons with thousands of crores of unresolved debts have fled abroad with the government

The mysterious case of CBI’s legality

The Central Bureau of Investigation (CBI) came into existence, based on a Resolution of the home ministry, dated April 1, 1963 – a sheer coincidence that it also happens to be April Fool’s day. Over the past few months, we have seen the CBI live up to its founding day with great zeal, being i

The Evolution of Modi

Gujarat was passing through a turbulent phase in the 1980s. The decade began middle class agitations against new reservation policies, and the caste friction turned communal under the watch of chief minister Madhavsinh Solanki, alienating majority of urban population on both counts. The ground was ripe for

Current Issue

Current Issue

Video

CM Nitish’s convoy attacked in Buxar

Opinion

Facebook    Twitter    Google Plus    Linkedin    Subscribe Newsletter

Twitter