GST Is Known As The Goods And Service Tax. The Goods And Service Tax Act Was Passed In The Parliament On 29th March 2017 And Came Into Effect On 1st JULY 2017. In The Entire World, More Than 160 Nations Have Already Used GST As A Tax Form In Their Country. It Is An Indirect Tax That Has Replaced Many Indirect Taxes In India Such As Excise Duty, VAT, Services Tax, Etc.It Divided All The Goods & Services In 0,5,8,12,18,28 Tax Category.In Other Words, The Goods And Service Tax Is Levied On The Supply Of Goods And Services. But Still, Petroleum And Alcohol Are Not In This Category.
- One nation one tax system.
- Increase govt. revenue.
- Reduce the price of essential goods.
- Easiest tax method with less paperwork.Helpful for trade and business.
One nation one tax system:
GST is good because it promotes one nation one tax system. GST is a transparent tax and also reduces the number of indirect taxes. because before GST we were paying different types of indirect taxes like VAT, Central sales tax, Service tax, Excise, etc. in many different forms. But with the coming of GST, we are paying a single uniform tax on Goods and Services across the country.
Increase govt. revenue
GST is good because it increases govt. revenue. After the implementation of GST, the taxpayers are increasing in our country which increases the revenue of govt. The total gross GST revenue collected in the month of September is 95,480 rupees. The revenues for the month are 4% higher than the GST revenues in the same month last year. so we can say GST is right. GST is a value-added tax levied on most goods and services sold for domestic consumption. The GST is paid by consumers, but it is remitted to the government by the businesses for the goods and services. In effect, GST provides revenue for the government
Reduce the price of essential goods
GST is good because it reduces the price of essential goods. The GST council has classified certain items under the 0% tax rate, implying that GST will not be levied on them. This list includes items of daily use such as wheat, rice milk, eggs, fresh vegetables. meat and fish. Some other sectors like education and health care will also be exempt under GST
Easiest tax method with less paperwork
GST is good because it promotes to use of technical tools to pay taxes with less paperwork, Present era is the technology era, and most of the work is done by technical tools which save our time and there is more transparency than paperwork so we can say this method is right. GST will not be a cost to registered retailers therefore there will be no hidden taxes and the cost of doing business will be lower. In the GST system, when all the taxes are integrated, it would make it possible for the taxation burden to split equitably, between manufacturing and services
Helpful for trade
GST is good because it is helpful for trade before the implementation of GST we are paying different taxes in different states but after GST there is a single tax on your goods and it removes border check posts. So we can say it is good for trade. GST will also help to build a transparent and corruption-free tax administration. GST will be levied only at the final destination of consumption based on the VAT principle and not at various points(from manufacturing to retail outlets). This will help in removing economic distortions and bring about the development of a common national market.
- New name of indirect tax
- Negative impact on some industries
- Small scale businesses dying
- Still developing
New name of indirect tax
GST is not good because it is a new name of indirect taxes. In GST our govt. saying about one nation’s one tax system but still, we are paying CGST and SGST.So we can say it is a new name of indirect taxes.
CGST – Central Goods and Service Tax
SGST – State Goods and Service Tax
IGST – Integrated Goods and Service Tax
Negative impact on some industries
GST is not good because it has a negative impact on some industries like Real E-State, Aviation, Hospitality, etc. It has shown some negative impacts on the real estate market. Due to GST. There is an increase in real estate prices from 8% to 12%. But it is expected that it will not last for the long term. It is affected the aviation sector also before GST, the service tax on tickets of the airways ranges between 6% to 9%. But now they are exceeded and range up to 15% which is nearly double the tax rate which was imposed by the govt. earlier.
Some retail products currently gave only four percent tax on them, After GST garments and clothes could become more expensive. The aviation industry would be affected. Service taxes on airfares currently range from six to nine percent with GST, this rate will surpass fifteen percent and effectively double the tax rate. Some economists say that GST in India would impact negatively the real estate market. It would add up to 8 percent to the cost of new homes and reduce demand by about 12 percent
Small scale businesses dying
GST is not right because it has a negative impact on small-scale industries that are struggling for their establishment.1st demonetization and 2nd GST become the double edge sword for small-scale businesses and unorganized sectors and due to this, they can’t get over it. So we can say it is not right. Adoption and migration to the new GST system would involve teething troubles and learning for the entire ecosystem
India is a developing country and this time facing many problems like poverty, population, unemployment, and many more and our govt. should invest money to get over these problems and make policies to improve the condition of poor people of the nation apart of implement such type of law.
As we know that every coin has two aspects head and tail same as GST has some positive and negative aspects. The aim of GST is the One Nation One Tax System to remove the different indirect taxes from the nation. It is expected there is an expectation of the growth of the Indian Gross Domestic Product. India where new changes are not easily accepted. It is a complex system to understand at first but later it is coming out as a long-term benefit for the country. The only thing that is required is to have patience continuous following of rules and regulations for uplifting the country’s economy.
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