What is GST Bill? – Its Advantages, Benefits and Problems associated with GST in India

GST Bill in India – A Step to Simplify the Tax System in India

Indian Govt. took the decision to replace all the indirect taxes applicable on the goods and services in both central and states level with a single tax system. That system is known as GST Goods and Services Tax (GST). The GST will improves the economies of all the states. It will be the biggest step in improvement of Tax System in Indian History. The main concept behind this is to make indian economy more stronger.

The idea of starting GST was came in the Year 2000, under the leadership of Mr Atal Bihari Vajpayee of BJP Government.

What is GST Bill

GST is an indirect tax that will replace a number of taxes applicable on most goods and services for manufacturer, seller and consumer of that good and services with a single level of tax.

Advantages / Benefits of GST Bill

  1. Transparent Tax – The Transparent nature of GST will reduce the many indirect taxes. After implementation of GST, business can show the exact amount of tax that taking from customer and customer will exactly know what he is paying as a tax amount.
  2. Lower Cost of Doing Business – As there will be no hidden tax after GST implementation, so the cost of doing business will be decreased and we can start the business and lowest cost.
  3. Tax Will Be Divided – After Implementation of GST the tax burden will be equally divided in products and services
  4. GST will be charged on the level of manufacturer and will be collected during sale. By this way prices will be come down and consumption will be increased so this will be beneficial for both consumer and manufacturer.
  5. The most important and biggest benefit will be all the taxes like octroi, central sales tax, state sales tax, entry tax, license fees, turnover tax etc will be not available and come under GST.

Disadvantages of GST

  1. Some facts says that there will be a huge negetive effect of GST on real estate market. The cost of new homes will be increased by 8 percent and demand will be reduced by 12 percent.

The Model of GST –

As per empowered committee dual GST system will be implemented in India. The GST will be divided into 2 parts –

  1. State Goods and Services Tax (SGST)
  2. Central Goods and Services Tax (CGST)

The proposed model of GST and the rate

A dual GST system is planned to be implemented in India as proposed by the Empowered Committee under which the GST will be divided into two parts:

  • State Goods and Services Tax (SGST)
  • Central Goods and Services Tax (CGST)
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