Every coin has two facets and so the same applies to the concept of implementation of the GST in India. Of course, this is the biggest Tax reformation in India after independence and thus it will have a tremendous and direct futuristic impact on the economic front. However, few negotiable short-term negative issues too are associated with it, but for the sake of an accelerated economy, a revolutionary step like GST had become really mandatory.
To know how GST is a boon for the Indian Economy, let us look into some significant facts & figures pertaining to Effects and Benefits of GST on Indian economy.
Primary Objective behind GST
Holding the crystal clear slogan “One Nation, One Tax, One Market” it aims-
- To eliminate Indirect Tax issues
- To remove Cascading Tax effects
- To increase the number of tax payers
- To entertain Consumption-based Tax administration instead of Manufacturing
- To bring out a buoyancy in Govt. Revenue
- To diminish Tax evasion and Corruption
Core Benefits of GST Implementation
- Emergence of GST completely replaced different Indirect Taxes both at Central and State level (e.g.-Excise Duty, Service Tax, Value Added Tax, Sales Tax, Luxury Tax, Entertainment Tax, Octroi and Entry Tax and many such).
- The entire nation has become a common market for trading.
- Poor and underdeveloped states got a chance for an economic lift.
- Tremendous Growth in FDI.
- Taxation proceedings became Easier, Transparent and Simpler.
- Reduced Tax Evasion and corruption
- The concept of Cascading effects completely removed
- Keeping in view at the ease of both the manufacturer/service providers and the consumers different Tax slabs have been introduced (i.e. 0%, 5%, 12%, 18% and 28%).
- Completely and successfully eliminated different Tax barriers between the center and the state.
- Excellent Boost in Government’s Revenue.
- Number of Taxpayers increased enormously.
- Ranking position in ‘Ease of Doing Business’ Global Rank, India becomes to known as a perfect, profitable and new destination for foreign investors.
History of GST, Futuristic Preview and Global Scenario
- In 1954, GST was introduced for the very first time in France. And, at present, there are almost 160 countries that have had GST (with little differences in their nature, scope, and applicability).
- Most of the countries with GST system are well developed/ rapid developing countries.
- Only Canada has Dual GST system which paved the Dual GST (CGST & SGST) path in our country.
- Being a techno-based and transparent tax structure, it will make things more clear which will be applied with same value throughout the country.
- In the initial stage, the idea of 5 different tax slabs will make the classification of goods and services easier.
- Issues pertaining to indirect tax will be resolved within a limited time frame.
- Generation of more revenue will enable the Govt. for more development works in all sectors in the country.
Henceforth, in conclusion, in terms of ‘How GST is a boon for Indian Economy?’ we find some of the following points-
- Most of the developed/fast developing countries across the globe apply it and so on the same path our nation is on now.
- Abundant Revenue strengthens the Government to provide better social privileges, safety, security and other significant services to its citizens to lead a healthy, safe and pleasant life ahead.
- Growth in FDI will bring a vast opportunity against unemployment and less global ranking.
- Emergence of different advanced software make the calculations accurate and fast. Advanced technology in everyday economic activities will make our country more efficient in terms of global business. Henceforth, we can see here clearly that how it will affect the Indian economy and will take it into a positive direction like developed countries. Speaking frankly, it is the real need of the hour to step forward against the old tax regime.
Although, being a new tax regime the concepts seem to be little troublesome, but the actual reason behind this is our poor/less IT infrastructure, less-efficient servers and other advanced technical resources which are not so much efficient. Villages in remote areas are facing major problems after GST.
But, in the long run, things are getting easier, faster more efficient, accessibility is being increased and the good news is that the emergence of latest Software are assisting businesses to deal with this new Tax revolution proficiently. This is the beginning of the new futuristic picture of a developed India.
Implementation of GST in India, is definitely a historical deed for the futuristic growth of Indian Economy. Our next generation will enjoy the real taste and benefits of GST. Thus, in a broad sense, GST is a great boon for India which will help our country to get enter in the list of developed nations very soon.