WAYS IN WHICH GST WILL HELP THE INDIAN ECONOMY…!!!
We all know that GST is the most radical tax reform in the country since Independence.
About nine years in the making, the GST will subsume most of the taxes and levies, radically changing the way tax is collected in India.
GST is expected to come into force by next year i.e. 2016.
The positive changes expected after GST actually comes into force are as follows:-
- Greater Tax Revenues: By doing away with large no. of taxes, GST will simplify the process of tax collection, improve compliance and boost revenues.
- No Cascading Effect: Being value added in nature i.e. tax levied at and only for every additional stage of production, GST will do away with the burden of tax on tax.
- Boost to Inter-State Trade: By having one tax rate for each service/product, GST will create a national market. It will also do away with the making of queues at inter-state checkpoints( a thing of past).
- Lower Inflation: A low GST rate with elimination of cascading effects will serve to bring down prices of many products.
- Higher Growth: Experts believe that combination of benefits mentioned above will result in higher GDP Growth- as much as 1 to 2 % above the current growth rate.
Hence after coming into force , Indian Economy is expected to reap out benefits from GST.