Goods and Service Tax (GST) Bill Importance in India
Goods and Service Tax (GST) is an indirect tax in India imposed when a customer buys a good. GST is regarded as an indirect tax imposed on the sale, manufacture, buying of goods. The aim of GST is to remove all the indirect taxes imposed on goods by the Indian Central governments and State governments.
The current situation of India is that there are taxes present at various rates and in different stages like the Centre has the taxes like Service tax, Income tax, Central sales tax, Security transaction tax etc. and on the other hand the State has entry tax, agriculture tax, property tax. The increasing of taxes at different level affecting the selling as well as the rates in domestic and in the international markets.
The characteristics of Goods and Service Tax (GST) in India are as follows:
a) GST are mainly of two types Central GST imposed by the Centre and State GST imposed by the States.
b) As per the recommendations of the GST Council after the collection of the tax it will be divided between the State and the Centre as defined by the parliament.
c) Alcohol for human, petroleum products, tobacco have been kept out from GST’s limit.
The main objectives of GST in India are:
a) To remove Indirect Tax issues.
b) Increase the number of tax payers.
c) To entertain consumption-based tax rather than manufacturing.
d) Diminish Tax corruption.
The importance of Goods and Service Tax (GST) in India are:
a) Abolishing of multiple numbers of indirect taxes like VAT, Service tax, CST, CAD etc.
b) To control black money circulation.
c) Increasing demands and consumption of goods.
d) Improving the economy of India in the long run.
e) Increasing demands will lead in the increase of supply and will help in rise of the production of goods.
f) GST will abolish 17 indirect tax issued and hence life will get simpler.
g) It will make manufactured goods cheaper.
h) There will be easy and simple online procedure.
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.
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