Economy

GST Bill round the Corner – Are you in Favour? Please Vote

GST Bill round the Corner – Are you in Favour? Please Vote

Long awaited and much talked about GST Bill is on the Rajya Sabha List Tomorrow.

After years of political tussle and various amendments to the original draft, government has managed to get in-principle support from almost all the important political parties of India. People in business and outside are hoping for something good to happen but they do not know the exact details.

GST is one tax replacing all the state and central indirect taxes with some exclusions:

Taxes to be submerged in GST

  • CVD & SAD
  • Entry Tax/Octroi/LBT
  • Excise
  • Service Tax
  • Central Sales Tax
  • Value Added Tax – VAT
  • Cesses & Surcharges
  • State Excise Duty (Except Liquor)
  • Entertainment State Tax
  • Luxury tax

Exclusions:

  • Toll Tax
  • Environment Tax
  • Stamp Duty
  • Property Tax
  • Electricity Taxes
  • Taxes on Liquor and Petroleum
  • Export Duty
  • BCD
  • Excise Duty on tobacco

Sounds good until now? You must be thinking that goods and services will be cheaper as there will be one tax instead of many?

You are wrong to some extent. Levy of single tax is good from administrative perspective but the same is not beneficial in terms of burden on consumer, major reason being high tax rates. Below are some listed impacts of the implementation of GST:

  • Increase in rate of services due to increase in rate of taxation 🙁
  • GDP Growth Rate to Increase by 0.5-1% 🙂
  • Increase in Exports due to price competitiveness will help Economy 🙂
  • Ease in Warehousing strategy will help Logistics Industry 🙂
  • Negative impact for E-Commerce Industry 🙁
  • Jammu & Kashmir will be covered under GST 😐

The list is long but the biggest advantage for businessmen is that they do not have to take care of compliances of so many state and central taxes. There will be one SGST/CGST/IGST and this will ease out the compliance burden of Industry.

What’s your opinion? Vote and Post your view on GST in comments section below.

[socialpoll id=”2378630″]

4 Comments

4 Comments

  1. Pingback: NIFTY Highly Volatile Today - Finance Minutes

  2. Pingback: Goa Paves The Way Of GST Bill For Presidential Assent - Finance Minutes

  3. Pingback: India’s Ease Of Doing Business Not Going Very Easy - Finance Minutes

  4. Pingback: GST Rollout: What will be Cheaper or Costlier? - Finance Minutes

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Stay updated with latest news on finance, taxation reforms, stocks, currencies, trading, global markets and many more.

Are you finding it difficult to manage your personal finance? Know your best opportunities of investments and savings with expert analysis and latest updates.

Copyright © 2016 Finance Minutes

You agree to not make actual stock trades based on comments on the site, nor on any techniques presented nor discussed in this site or any other form of information presentation. Finance Minutes will not be held liable for any losses you in occur while trading. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. All information is for educational and informational use only. You agree to consult with a registered investment advisor, prior to making any trading decision of any kind.

To Top