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TMI BlogIS Implementation of GST is Boon or bane to the economy ?X X X X Extracts X X X X X X X X Extracts X X X X ..... IS Implementation of GST is Boon or bane to the economy ? - By: - Sanjay Loharkar - Goods and Services Tax - GST - Dated:- 21-7-2022 - - Introduction On 1 st July 2017, launched Goods and Service Tax 2017 had only one purpose in the eyes of the Government, and the finance minister make the One Nation One Tax. Introduced new Indirect tax in replacement of service tax, excise, VAT, etc. main purpose of GST comes into force on to stop the cascading effect of tax (double taxation) and cascading effect. But obviously, anything has two sides or we can also say that every coin has two sides. In GST also there are two sides (i.e Boon or bane) one is good for the nation and useful for growing our economy completely abolishing the casc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ading effect and the second is difficult to adopt new tax in one night, in the new GST regime taxpayers face issues to adopt the law/act/tax. As per research and figures of revenue of indirect tax after coming GST implementation drastically change and observed that growth in a number of revenue. Why GST implementation is BOON to our Economy Goods and Service tax is universally known as GST which is a consumption-based tax currently used on the supply of goods and services. It is a comprehensive tax because it has subsumed almost all the indirect tax except a few state taxes. Before this tax model, there are two types of tax in India which are levied by the government in different ways. The old tax system of India is lengthy and c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... omplex, to file tax individual has suffered some paperwork which is typical for the common man. This paper compared the current GST Framework and the old taxation system and describes its impact on the Indian economy in brief. However, researchers observed also earlier studies. More than 160 countries have implemented GST so far. However, the idea of GST in India was mooted by Vajpayee government in 2000 and after having many discussions with the different parties it was passed on Aug 4, 2016, by the Rajyasabha. Finally, India implemented GST on 1 July 2017. In our mind question coming is whether GST implementation is BOON or BANE. As per results and drastic change in figures of revenue from Indirect tax is positive impact happen after c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oming to GST is boon for Indian Economy. The gross GST revenue collected in the month of June 2022 is ₹144,616 crore of which CGST is ₹25,306 crore, SGST is ₹32,406 crore, IGST is ₹75887 crore (including ₹40102 crores collected on import of goods) and cess is ₹11,018 crore (including ₹ 1197 crore collected on import of goods). The gross GST collection in June 2022 is the second highest collection next to the April 2022 collection of ₹ 1, 67,540 crore. Major tax reform in India There are 160 countries that have implemented GST. France was the first country who introduces GST in 1954. Only Canada has a dual GST model (India is also implemented a Dual GST Model).GST Rates are usual ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ly between 5% - 28% generally. Goods and Service Tax (GST) has been introduced in India w.e.f.1st July, 2017. It brings out a new era of indirect taxes in India. It combines a mixture of indirect taxes and allows tax credit against goods as well as services. It is levied at all stages right from manufacture up to final use with credit of taxes paid by at previous stages available as set-off. In short, only 'value addition' will be taxed and it is to be borne by the final consumer. The final consumer will, however, bear only tax charged by the last dealer in the supply chain with the 'set-off' benefits that are allowed at all the previous stages. This is an indirect tax that will make India a united general market. We hope ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... this new tax is beneficial not just for the common man but for the whole country. Impact of GST on Indian economy-Positive aspects Redesign Indirect Tax structure: By subsuming majority of indirect taxes like Excise duty, Service tax, Sales tax, VAT, Purchase tax GST reshape the indirect tax structure Removal of Double Taxation: Under the old tax structure every invoice had the value of goods came as well as services. Both of these attracted a rate of 70% each giving a total rate of 140%. Under the current taxes are unified under the supply of services and the taxation system is unified. Greater tax revenues: GST has made simple tax structure. Due to this simple tax structure, the tax revenue of government h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as increased as the number of taxpayer increase. Push to Export: GST has eliminated the custom duty of export which Increases export of goods which has increased international transactions and made easier. Growth of Industries: as per the Indian retail industry, the total tax component is around 30% of the product cost. Due to impact of GST the taxes have gone down. So, the end consumer has to pay lesser taxes. The reduced burden of taxes has enhanced the production and growth of the retailer and other industries. Uniform tax regime: With only one or two tax rates across the supply chain as against multiple tax structure at present, state specific advantages / disadvantages are gone. This provides a fair play ground for all s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... takeholder and focus be brought in to efficiency rather than vantage points. Negative GST impacts- we can say BANE to the Economy Lack of centralized registration: the previous taxation system allowed the taxpayer to register form all over the country via central authority however, with the implementation of GST,Taxpayer have to register GST from their state and pay the central tax Taxation for Free Services: Even if a particular provide any services for free they are still eligible to tax for it. Service Costs to Consumer: The rates of taxes to the end customers will increase. The GST is destination based tax which means the tax burden falls on the end customer. Conclusion :- In this way GST law or act go ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing to have a changes in economy and taxpayers take some time to habituate for new positive changes in indirect taxation and council member or committee working on that in five years of GST regime for making simple indirect taxation in India. In day to day activities taxpayers facing challenges in new GST regime, then GST council make respective change for making simple tax by issuing certain notification, circular. Looking at the five years completed journey to GST, mostly all taxpayers are on track to follow law and facing challenges is reduced compare to new GST regime. It is going to shows positive impact on our economy. - - Scholarly articles for knowledge sharing authors experts professionals Tax Management India - taxmanagem ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... entindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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