Benefits of GST 2017 on Indian Economy
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.
The GST will help in reducing corruption as the power centralized. The optional power of Government official will also reduced.
In GST Registration, documentation and paying taxes will be easier for an individual.
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.
The development of under-developed state have great path under GST benefit. As the law of interstate which levy 2% is completely finished.
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.
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.
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%.