We all have come to know
about the term GST by now. Past few months GST has been a topic that included
so many debates & discussions. Some say if GST is implemented then it would
fall hard on them whereas some say implementation of GST by the present
government would turn out to be one of the most remarkable reforms measures in
past 25 years in the economic sphere. But the mediocre people like you & me
would just ponder on the mere fact that how this GST bill gonna be important in
our life. So for such people like who do job work under GST, let’s have a look that how the GST bill is
important.
·
If the GST bill is going to be implemented then
all the central-state indirect taxes levied will be replaced by GST & tax
paying will be much easier and reverse charge under GST will be easier.
·
The basic idea behind implementing GST is
that no more will the people pay indirect taxes at different rates for the same
product.
·
GST will transform the Indian market into a
big, single, co-operative & undivided market.
·
Once GST is implemented then there would be
no difference between the taxes paid for all goods & services exempting a
few items.
·
GST will help us to have a corruption free
economy as a single product cannot be taxed more than once anymore from now on.
·
GST will be levied on the final destination
of consumption & not on every level. Since GST will be levied on the final
destination of consumption it means the authorities will be having a clear
& vivid picture as where the good is being taken to.
·
According to economists if GST is implemented
then it will give a boost to the Indian economy as well as Indian market
promoting high exports & more employment scopes.
In a
situation like this when Mr. X will be selling a product to Mr. Y after adding
sales tax to it & again Mr. Y will be re-selling the same product to Mr. Z
after adding sales tax, in order to recover the sales tax amount he had to pay
to Mr. X from Mr. Z. But in order to recover his sales tax amount Mr. Y is
adding tax on tax. So in situation like this GST comes in as a savior saving
the person from paying ‘taxes on taxes’. Because of GST the final consumer of
the product has to bear only the tax which will be charged by the last supplier
of the product. Many products like food grains, agricultural products,
petroleum products, tobacco, and alcohol are kept out of the GST context. Not
only will GST bring all indirect taxes under it but also will eradicate any
kind of taxes that is levied on the people due to location business. If GST comes to force then one does not need to think twice before investing & can
setup his business in any part of the state.
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