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GST Is A Simple Tax System Standard For The Global Business Better Business Environment and Flexibility

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14 views

GST Is A Simple Tax System Standard For The Global Business Better Business Environment and Flexibility

Uploaded by

ladehag299
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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GST stands for Goods and Services Tax imposed by the Government in a

move to replace all of the indirect taxes so that the taxation procedure
could be simplified. The main idea behind introducing GST is to improve
the economy of the nation. A single undivided Indian market would
strengthen the economy and make our nation powerful as well.

GST is a revolutionary step taken by The Government of India to make


Indian economy stronger than before. On 1st July 2017, government of
India announced a new way of tax payment (GST) which made the process
of tax collection simple as compared to the previous tax system. GST is a
simple, sophisticated and consumer-friendly way how the Government of
India will collect the tax from the businesses and individual citizens. GST is
implemented in India to replace the previous indirect tax systems which
were very complex with a simpler, uniform tax system. In previous tax
system, there were multiple confusing taxes like VAT(Value Added Tax),
service tax, cess tax, entertainment tax, sales tax etc making it a very
confusing tax system for consumer/ common man and even for the
businesses. So now people and businesses have to pay only one type of
Tax which is GST. GST is a consumption based tax which means the tax
should be received by the state in which the goods or services are
consumed and not by the state in which such goods are manufactured.
The GST tax system will take the form of “dual GST” which is concurrently
levied by central and state government.

GST is composed of three types of taxes and those are CGST,


SGST/UTGST, and IGST and which are determined by the movement of the
goods or service i.e. intrastate movement or Interstate movement. Many
economists and experts have predicted that the GST bill will boost up the
economy in long run but we see some short-term impact on the economy
too. India is a collective economy where each state has its own set of
rules for them. This makes the growth of the country slow, causes
difficulties for the businesses and higher possibilities of tax evasion and
corruption. In additional t that previous tax system was complex so small
businesses used to ignore it. To make the tax payment process simpler
and create a win-win environment for both, government as well as
businesses, and to reduce the corruption, GST bill is introduced in India.

Advantages

 GST is a simple tax system


 GST has become a standard for the global business
 Increase the scope of a better business environment and
flexibility.
 increase the number of taxpayers
 Removal of the Cascading Tax Effect (tax on tax)

Disadvantages

 the time to digest the whole big change


 software need to be updated with the latest tax system
 services will become costlier
 The government still revising the tax brackets, businesses still not
able to understand the process which was claimed to be simpler
than earlier system. After a year and more still, small businesses are
not comfortable with tax filing. Still, GST is not a standardized
process; the government keeps optimizing the process. Because of
this Chartered Accountants are not able to fix their fee structure and
that affects businesses to plan finances.

GST will surely help to boost up our economy but it’s a long-run process,
which will take time. Only the time will tell us whether the GST was
beneficial for India or not. But this tax reform shows that Indian
government and its citizens are ready to take big steps for the betterment
of the nation. People coming together, discussing, debating on national
growth that is big enough take away from this.

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