Is GST a Boon or a Bane?

Goods and services tax is the largest tax reform of India so far, aimed at resolving the disparity between SMEs by improving compliance rate, increasing government revenues, and merging SMEs and local taxes. Is this the first step in the right direction or is it half the measure? The implementation dilemma may echo for years. Furthermore, does an ordinary person benefit from this tax or does it have a speculative impact? These are just a few of the main problems related to GST.

In the June 5, 2017 edition, ET Wells tried to answer the above questions on GST. It details the taxation and lists the impact on each industry after implementation. It also explains to the reader about how to comply with GST and more importantly how to register with GST. With the pioneering moment of India's policy decision, it is expected that this issue will be a must-read book.

ET Wealth is the weekly personal finance newspaper published in India the first time to introduce news, opinions, insights on various topics related to the rapidly changing reader's economic life.

It is still premature to predict whether 100 days have passed since the product service tax was enforced and that it predicts the real impact on the economy and that it is good for people in that country. However, as expected, every department of society has dissatisfaction. We call this a problem by experts. However, as Gujarat elections expire later this year, the government adjusted several small business rules based on GST. The government infrastructure for submitting goods and service taxes is not enough to process the final return. The Goods and Services Tax Network (GSTN) portal is often blocked by multiple applications, and GST increases the compliance costs of small businesses lacking technology.

Goods and service taxes are mainly gospel of ordinary Indians. Conventional items are considered inappropriate. Other projects are 5% and 12%, respectively, and 14 - 18% tax if GST is not available. However, in some industries the consumption tax is a curse, electronic equipment has become expensive. We should take a new step. Consumption tax is a new measure for Indians middle class and lower class. Finally, goods and service taxes will benefit India's economic situation.

The consumption tax excludes cascade tax. Consumption tax is tax excluding cascade tax. Goods and service taxes apply only to the added value of goods or services. Currently, when a manufacturer sells its products to wholesalers, some of the tax will be paid. Suppose the manufacturer pays 10% of his 100 Rupee products. As wholesalers add more Rupee 110 Tax, he actually taxes and increases the tax of Tax 10 itself. So this is a cascade of taxes. Goods and service taxes apply only to value added, so they do not apply to taxes. GST manufacturers pay 10% tax. Wholesalers do not need to file a final tax return of 110. He just needs to pay taxes for added value. Therefore, if he sells the item to the retailer 150, he must pay a tax of 40 rupees.

Consumption tax is consumption tax. This is based on destination / actual or final consumption point of goods and services. GST is collected at each stage of purchasing or selling the supply chain. Manufacturers, wholesalers, or retailers are required to pay the applicable GST rate and apply for GST through a tax credit mechanism. However, as the last person in the supply chain, consumers will bear this tax. Therefore, item service tax is the last retail tax. Current consumption tax and service tax are replaced by CGST at a single tax rate. VAT is replaced by SGST. IGST is used for domestic sales / stock transfers. In the case of imported goods, CGST and SGST are imposed. The tax rate structure of goods service tax is the same as the tax rate structure of VAT. The interest rate of the basic product is low, and the interest rate of the luxury item is relatively high.

Is GST the Indian gospel or a curse? If the bill is passed, how is the life of an amateur influenced?