Impacts streets to the huge offices of extremely big

Impacts of GST on India

Shree Senghani

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Introduction

These days, the most commonly asked question in India is ‘what is the
cost of a product after adding the GST on it?’. For a long period of time ‘GST’
has been a vast topic to be discussed from those narrow streets to the huge
offices of extremely big CEOs. So after all, what is GST? GST is Goods and
Services Tax in India is a comprehensive, multi-stage, destination-based tax
that is levied on every value addition. It is an indirect tax that is added on
the supply on goods and service GST law has replaced many indirect tax laws
that previously existed in India. It is basically one indirect tax for the
entire country. The GST act was passed in the parliament on 29th March, 2017
and came into effect on 1st July, 2017. The GST journey began in the year 2000
when a committee was set up to draft GST law. Te committee was set up by the PM
Vajpayee. In 2204, a task force concluded that GST must be implemented to
improve current tax structure. Then, in 2006, Finance Minister proposed GST
introduction from April 1, 2010. As seen, the plan of introduction in 2010 was
a big fail. Then, in 2007, it was said to be phased out. The rates reduced from
3% from 4%. Later, EC finalises dual GST structure to have separate levy,
legislation in 2008. And ten in 2010, project to computerise commercial taxes
was launched but GST implementation was postponed. In 2011, Constitution
Amendment Bill to enable GS law was introduced. In 2012, Standing Committee
began discussion on GST but stalled it over clause 279B. Standing committee
then tabled its report on GST in 2013. In 2014, GST Bill reintroduced in
parliament by Finance Minister. GST Bill passed in Lok Sabha but as not passed
in Rajya Sabha and this happened in the year 2015. In 2016, GSTN went live and
Amended Model GST law passed in both houses and president gave assent. Four
supplementary GST Bills were passed in 2017 to Lok Sabha and were approved by
cabinet. Rajya Sabha passed four supplementary GST Bills. Final GST planned to
be implemented on July 1, 2017. then launches India’s first GST software. And
then finally, GST is launched 1st July.

Positive Impacts of GST on India

·       
Business Booster

GST might turn out to be a win-win situation for the entire country. It
will bring benefits to all the stakeholders of industry, the consumer and the
government because it will lower the cost of goods and services and give a
boost to the economy and make the products and services globally competitive.
The aim of GST is to make India a common market with common tax rates and
procedures and remove the economic barriers. It will pave the way for an
integrated economy at the national level. By engrossing most of the Central and
State tax and by allowing a start off of prior-stage taxes for the transactions
across the entire value chain, it would reduce the ill effects of cascading,
improve the liquidity of the businesses and improve competitiveness.

·       
Strengthen Make in
India initiative

GST is expected to give a major boost to give ‘make in india’ initiative
of the Government of India by making goods and services produced in India
competitive in the National as well as International market. Apart from it, all
imported goods will be charged with integrated tax (IGST) which is equivalent to
Central GST + State GST. This will bring equality with taxation on local
products.

·       
Transparency

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