GST Pros and Cons.
GST in India is basically a Value Added Tax(VAT) is proposed to Comprehensive Indirect Service Tax
that would be Levied on the Manufacturer, Sales, Goods, and Services on the organization In India.The Greatest Benefit of GST will replace all the Indirect Service Tax on the Goods and Services by the Central and State Government.
However, Peoples of India are Excited to see the Change with The GST in India.However, it has some demerits as well.Let’s discuss the Pros and Cons of GST in India.
Pros of GST in India.
- GST replace all the indirect taxes in India and is of the Transparent type of VAT.
- There will be no hidden cost of Service Tax to the Registered Retailers, therefore, the cost of doing Business will be Lower and Reliable.
- The Prices of the Goods will be decreases, therefore, companies have a larger amount of consumption for the Goods and Services and people will get the benefit of the same.
- The Production and Distribution Of Goods and Service will be transparent and there will no doubt or misunderstandings will create among retailers and the common man.
- There will be separate Taxation system for the Goods and Services which is present taxation system.It requires the division of transaction values as per Goods and Services, therefore, increase the greater compilation and proper administration.
- In The GST system, in which all the Taxes are Integrated, there will be a possibility that all the Tax Burden would get splits and carries equality in Service Tax.
- GST will be Levied only on the Final Destination of Consumption of Goods from Manufacturer to Retailer based on the VAT Principle.This will helps for the Development of Common National Market.
- With the Rise Of GST in India, the Dream of Corruption Free Tax Administration becomes possible.
- In the Present Tax system when the Product is finished and moves out of the Company, again there is another Tax levied when the product is sold.So all this process of Taxation will get Revised and there will be one Tax levied.
- GST is handled with a Proper GSTN team which is fully Tax Integrated Platform to deal with all the aspects of Tax applicable in GST.
Cons of GST in India.
- Some Economist says that The GST would have some negative impact on the real estate world, likely expected to increase the cost of Lands by 8% and reduces the demand by 12%.
- Some Financial Experts Says that Central GST and State GST are nothing but only had their new names for the Excise tax, service tax etc.
- Some retail products have only 4% Tax Levied on them but after GST the rates would get increased.
- The Aircraft and Aviation Industry would also get affected.The fare of aircraft have 9% tax on the present taxation system by after GST it would be increased by 15%.
- Adoption and Migration will get distinguished and the taxation circle gets affected due to GST.
Benefits of GST for Common Man.
- Prices will become cheaper for Movie Tickets.
- Lunch and Dinner in Resturants at affordable prices.
- The price of Two-wheelers gets cheaper.
- Televisions and washing machines.
- Small and Luxury cars.
Difficulties of GST for Common Man.
- Mobile Bills.
- LIC bills.
- Health cares bills.
- School Fees.
- Banking and Investments.
- Cigarettes and tobacco.
- Residential rents.
Well the GST will definitely give a hope to common People where they do not have to pay multiple taxes as the taxation system would get integrated and common man gets the benefit for it.
Thanks for reading the article.Do share your view and reviews.0