GST INDIA is one of the taxes that is imposed on goods and services. Goods and service tax is an indirect tax that is imposed in India on the domestic transaction of commodities and services. It is imposed at every level in the production process but refunded to all in the supply chain except a final consumer.
Let’s discuss GST?
Goods and service tax is a tax that is imposed by the Indian government for the replacement of the indirect taxes from one tax that is GST. GST is introduced by the Indian government on 1st July 2017.
The GST consist of two components one is central (GST) CGST and another is State (GST) SGST. Both central and state government simultaneously imposed GST on the value chain. GST will be imposed on the purchase and sales of goods and services.
Is GST helpful for economic growth or not?
Yes, GST is helpful for the growth of the Indian economy. The Indian government had replaced the indirect taxes from the goods and service tax. The cost of consumer goods would be cheaper, which would increase the competitiveness in the market and may increase GDP growth.
Benefits of GST in INDIAN Economy: –
- Reduces tax on tax
A tax ( called in latin word taxo) is an essential financial charge or some other types of levied that would be pay by taxpayer ( an individual or other legal entity) by the government organization.
- Removal of Indirect taxes
Removes indirect tax such as value added tax (VAT), central sales tax(CST), Service tax, Computer-aided design (CAD), seasonal affective disorder (SAD) and Excise duties.
- Reduction of Manufacturing cost
Reduction manufacturing cost of the finished product from the tax burden. So, the price of a product will be decrease than the consumer can purchase more.
- Reduce the burden of the Indian consumer
When the price of a product is reduced than the consumer purchasing power would increase and vice-versa. GST can reduce those taxes that would increase the price of product and services
- Increase in Demand
Price of the product is directly related to the market demand. If the price of the product is decrease than the demand of that product is increase and vice-versa.
- Boost the Indian economy
GST has a great role in the growth of Indian economy. It can reduce the cost of product and services through which the competition in the market increase and it will increase the GDP.
- Control on black money
It helps in prevention of making of black money by providing stricts structures of goods and services.
How Will GST Effect on Indian Economy?
GST implementation has affected the middle-class businessman. The production of the product is decreased which will increase the price of a product. So, the consumer cannot buy products and the market was penetrated. There are few points that focus on the effective part of the Indian Economy by GST.
- Implementation of GST is not easy
The implementation of Goods and Service tax is very problematic for the Indian Government. Many opposite Politicians were regretting towards the GST; this will affect the Indian Economy.
- The mediators have been affected
The middle businessman has been affected by a levy of the GST in India. The Initial cost of the products has been increased that will affect the purchasing power of consumers.
- Lack of Internet Awareness
People are not aware of using the internet, Lack of knowledge and skills about the internet with that they are getting into troubles.
- Hard the analyze After the implementation of GST, there were many problems arises, that was very critical. To analyze these problems also very difficult for a middle businessman. So, their problems were affecting the Indian economy.
As we know that after implementation of the GST on the product and services the necessary products have become cheaper but on the other hand the luxury products are dearer in India.