Thursday, 6 July 2017

HOW IS GST BILL IMPORTANT

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 GSTlet’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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