GST - One nation one tax a short essay
The Union government
has introduced a new indirect taxation system by the 122nd Constitutional
amendment (GST) Act. GST would be applicable after July 2017. GST was introduced to
remove the complexity and cascading effects of old taxation system. GST has 5
tax slots i.e., 0%, 5%12%18% and 28%. The GST will not be applicable on
petroleum and alcohol. The GST have State GST, Central GST and Integrated GST
(For Product and service which passes through many states). The Union
Government will bear the burden of loss of tax (States) for initial 5 years.
The GST will be helpful
in comprising all the indirect taxes under one umbrella. This will help in
reduction of cascading effect. Through GST, Indian democracy has shown the
maturity level that all states can come on a single table to solve the
problems. This will also indirectly help in reducing the tax related cases. The
consumer will be more aware on the amount paid by them on indirect taxes.
GST has some drawbacks
also like it will increase the cost of GST filling. While half on the Indian
business run in the rural and semi-urban cities. It would be difficult for them
to learn a new tax system completely. Now then need some specialist to file the
return. The long pending list of GST return has made their business hard.
Thus it can be conclude
that, while GST has the potential to help the country. Its success depends on
the efficiency of the administration.
No comments:
Post a Comment