The new Goods and Services Tax [GST] is India’s major tax regime initiative which replaces the old multiple tax regulations on most of the goods and services. GST seems to be a mix where certain goods or necessities will become cheaper whereas others might become more expensive. GST would change the old indirect tax regime of production based taxation to a consumption based system. It is a reform like no other.
GST is also called as ONE COUNTRY ONE TAX as under this tax regime it amalgamates all different central and state tax under one single tax and avoids cascading/ double taxation[ i.e tax on tax].The entire Indian market will be under the single umbrella for taxation. Under GST, it is expected to improve compliance procedures and better tracking on the supply of goods and services. This will lead to a lesser chance of tax evasion, reduced paperwork, more collection of tax revenue by Central and State Government.
The Common Man of India is still trying to understand GST and its impact on them. People believe GST law will yield positive results although there may be some teething issues at the implementation stage. As per the previous indirect tax laws, there were different products in different states with different tax rates, now with the implementation of GST, the entire nation will charge the same rate for the product in every state. This will help the common man to understand the law appropriately.
Below are the Positive Impacts of GST on the Common People of India:
- Reduction of prices due to reduction of tax costs of the manufacturer, dealers and service providers
- Easy access to goods and services due to the elimination of toll plazas and check posts at the time of transportation
- Improved service levels due to lesser complications on tax procedures, formalities and administration as everything is bucketed under one tax
At this initial stage, it may be difficult for the common man to understand benefits of GST however, in the long run, it will become extremely beneficial. As to now, it is a question in the minds of every common man of India on understanding what impact GST will have in their wallets, whether the goods will be more expensive or economical, or whether tax returns and other compliances processes will be lesser cumbersome, or what would be the treatment of old stocks or which industries would get more impacted, or whether the system would be updated correctly.
It is said that GST implementation will help in smoothening the tax laws and curb most of the illegal transactions. The indirect tax will ultimately impact the end users, directly or indirectly. The government tax revenue will be an increase in GST as are under the eye of the system and once a person registered under it, all the information/ details of such person would be tracked easily. People also creating awareness about the subject matter and accepting this big change positively. The government kept many items of common man necessities under low rate or exempted rate. Economists state that it will reduce inflation, bring in less corruption and GDP of the country would go up in the upcoming span of time. It can bring more transparency and good compliance.