Post submitted by our user: Pooja
Essay on GST- What it has for the public and the nation.
GST – Goods and service tax was in news from last two years, since Kelkar committee reports on financial reforms. This is an indirect tax which will subsumed all the indirect taxes which are in existence like Service tax, VAT, CST etc. The main purpose to impose this tax is to widen the tax base by lowering the tax rates. It is 122nd amendment in the constitution and the slogan was- one country one tax.
As GST bill has been passed in parliament, it is likely to be implemented from 1st July 2017. It has tax slabs as- 5%, 12%, 18% and 28%. All the products are categorized into these categories. The central GST bill, 2017; The Integrated GST bill 2017, The GST (Compensation to states) Bill,2017; and the Union territory bill,2017 has been finally passed.
Key features:-
1) It is going to remove the cascading of taxes- means Tax on Tax. Earlier, there were many indirect taxes and to file those were also a havoc task but after it, it will be very simple process to apply and taking input credit.
2) It has moved the tax system from production to consumption.
3) It has interlinked everything from supplier to consumer. It means there will be less possibilities of tax evasion.
Some fault lines:-
1) As now tax will be based on items; e.g. on shampoo the tax is 28% but it is not necessary that only a rich will use this shampoo. There are middle income people too who will be needed to pay more for it.
2) It can increase inflation in the country because of rise in prices of products.
There are a lots of areas where GST will not be implemented, for instance-Alcohol, crude oil, Petrol, diesel, electricity, natural gas and crude oil, State will levied its own tax on these items. Overall, GST will benefit our economy in the longer run. Inflation may be increased now but later on, GST will make everything equal and will help in GDP growth and per capital income of the country.
Thanks Mam:))
Mam, how’s the format?
i mean, could it be in much more better way?
you can add benefits of GST like:
Benefits to Citizens:
(i) Simpler tax system and Transparency in taxation system
(ii) Reduction in prices of goods and services due to elimination of cascading
(iii) Uniform prices throughout the country due to one single tax system
Benefits to Trade/Industry:
(i) Reduction in multiplicity of taxes due to mitigation of cascading effect of tax
(ii) Efficient neutralization of taxes especially for exports
(iii) Simpler tax regime-fewer rates and exemptions
(iv) Development of common national market
Thanks Sir:))
thanks mam
mam please do correction tax slabs are 5% 12% 18% 28%
Thank you plzz post some more essay on latest topic
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