GST (Goods and Service Tax) in India is regarded as one of the largest taxations that has taken place in India and also passed by the Indian Government. India has adopted two GST that means GST will be administrated both by the State Government as well as by the Central Government. GST has replaced all other taxes like Excise duty, Service Tax, VAT, CST etc. which results in availability of services and products to consumers at a lower price.
Recently, Assocham has given suggestions that the government should consider and cut the GST rates by 25% for all slabs, and that will encourage businesses to pay GST more which will boost the Indian economy.
It is believed that the GST in India will bring change in the tax system by distributing the burden of tax equally between the services and manufacturing. In a result it is to be noticed that the growth of Gross Domestic Product (GDP) can be between 2 to 2.5% with the implementation of GST in India. In export the increase can be between 10-14%.
In a survey, it was noticed that there were 10-11 types of taxes imposed on the road transport business and thus the GST will be helpful in the reduction of transportation cost by the elimination of other taxes in India. It is believed that the GST would be the revolutionary for the economy of India that could increase the GDP by 1.0 to 3.0 %.
It is to be believed that GST will improve the taxation system of India and it is regarded to be more transparent than the previous taxes in India which will generate more revenue to the government. Besides, it will reduce corruption as well.
DBS bank noted that GST may lead to the rise in expansion rate that might remain for a year but GST will affect on the economy of India positively after that. Moreover, Real Estate plays an important role in the economy of India but according to some experts there will be negative impact of the GST on the Real Estate business which will reduce the demand about 12% but will add up the additional cost by 8-10%.
There are 3 types of GST present in India which includes CGST, SGST, and IGST. According to some economists, there is nothing new in GST but these are the new names of VAT, CST, Service Tax, and Central Excise.
Besides, Goods and Service Tax (GST) in India is not only business friendly but friendly to consumer as well. Moreover, India has taken adoption of two GST model that means both the Central government as well as the State government can administrate it. Hence, GST increased both demand as well as consumption of goods which will improve the economy of India in the long run.