GST in spurring growth in the economy expected to be a significant improvement. When introduced, the GST tax system not only simplify, but also help boost revenues increased compliance, and reduce the outflow into the hands of consumers will make exports competitive.
Its hoped that the new government in the upcoming budget set forth a road map for GST.
GST or Goods and Services Tax is a long-overdue reform of indirect taxes have been waiting for India, that is, and in the current tax system is to iron out wrinkles.
Both central and state levels (for a list of except goods and services), excluding value-added tax with the GST on both goods and services is being set to start.
It is a single tax imposed on the product or service that is sold will. In other words, CENVAT, central sales tax, state sales tax, octroi, etc. have taxes would not exist and will replaced by the GST.
GST, as mentioned above and is an indirect tax will be borne by the customer. There is a standard rate of GST in various goods and services. Which is largely in line with international rates will be.
You may wonder why it is very important to improve the country and how it will help the common man. So:-
Simpler tax structure:
Eliminated several taxes on a product or service and place a single tax makes the tax structure expected to be very simple and easy to understand. Paperwork will be simple and will not decrease the complications accounting for businesses.
A simple structure can bring about greater compliance, such taxpayers and tax revenues for the government in turn is a growing number.
The current state of the Indian economy, fiscal consolidation and fiscal deficit reduction demands. Crisil said in a recent report that GST country’s best bet to achieve fiscal consolidation.
There is not much scope to reduce government spending. Increase tax revenue to improve the financial health is the best choice.
GST will eliminate all other forms of indirect taxation. Hence This would effectively mean that the tax paid by the final consumer in most cases will reduce.
Consumption is lower prices, which is beneficial for companies will help increase again.
GST is the biggest positive that would be levied on a common base of goods and services is.
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