Benefits of GST 2017 on Indian Economy

More Savings

GST will reduce the double payment of taxes. So it will help to reduce the cost of goods on Indian Economy and a individual can save more lot of money.

Reduction of many taxes

In GST many direct and indirect taxes will reduce and only single GST tax will applicable.

Reduce corruption

The GST will help in reducing corruption as the power centralized. The optional power of Government official will also reduced.

Tax Filing

In GST Registration, documentation and paying taxes will be easier for an individual.

Common Market

GST will help to create a common market all over India. Almost all Primary sectors will covered under GST.

Boosting of Revenue

In GST both Central and State Government will dual supervise over taxes. It helps to reduce the Tax-exempt goods and most of supplier will pay taxes.

Reduction in Inflation

Reduction in prices in GST benefit will reduce the economy shortfall and inflation.

States Development

The development of under-developed state have great path under GST benefit. As the law of interstate which levy 2% is completely finished.

Employment Boost

As under GST there will reduction in price of goods which lead to more demand. For more number of demand there will large number of employment will raise.

GDP (Gross Domestic Product)

As demands grows there will raise in GDP which is another benefit of GST to the economy and customer.

Impacts of GST 2017 on Indian Economy

Increase in prices due to increase in tax

There are some sectors like Textile industry are free from taxes. As tax burden will increase on many other sector which lead to increase the price of products.

Petroleum products not cover under GST

States will impose their own taxes on petroleum sector as this will kept aside from GST.

Multiple Registrations

Under GST every business requires to register in all the states there are working. This will increase the tax burden.

High tax burden on small scale industry

In current excise law, SMEs have to pay excise duty on turnover more than Rs.1.50 crores. But under GST excise duty will impose on Rs 20 lakhs. Because of which there will be high burden on SMEs.

Business software changes

Many business use software for accounting and filing tax. After GST company has to change their software and buy new one which lead to increase in cost.

Composition Scheme

This scheme is not available for many businesses like online seller, service provider. It is only available to business who sells goods.

Impact on Real Estate Market

In GST the cost of new homes will add up to 8% and its demand decrease to 12%.

 

 

DIFFERENCE BETWEEN THE CURRENT BILL AND 2011 UPA’S GST

GST BENEFITS AND IMPACT ON INDIAN ECONOMY

BASICS OF GOODS & SERVICES TAX (GST)

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