On 1st July 2017, our Prime Minister announced his idea of One Nation One Tax, i.e. GST (Good and Service Tax). All the eyes were set on the television. Every person was eagerly waiting for this big change. Surely, it was a historic step taken by any prime minister. It took long seven hours to get approved in the Lok Sabha.
Most of the people still don’t know what all the GST means? It is actually an indirect tax that is developed for aiming the Indian market. Present as a single tax applied to the supply of goods and services, it is applied from the manufacturer to the consumer. At each stage there is credit of input taxes. But, after GST it is available in subsequent stages of value addition. Because of this the final consumer has to pay only the GST charged by the last dealer.
This intelligent step had brought lots of benefits with it. On the implementation of the GST rule, now the services fall under five main categories – 0%, 5%, 12%, 18% and 28%.
Make the payment of the last tax
As mentioned above, the consumer has to pay the GST that is charged at the last step of the supply chain. At the every stage of production, the input taxes are paid which are now accessible in the afterward stages.
Take the benefit of tax reduction
Now, both the service providers and the manufacturers can pass the advantage to the customers. GST also enrolls anti-profiteering point, according to which it is obligatory to pass the advantage of tax reduction to the consumers too.
Petrol and alcohol not in the list
It is the good news for many as the diesel, petrol and turbine fuel are not on the list and kept out of GST. But, this is a temporary thing and can be added later.
Lower down the load
In the services like banking and finance, both of them are not impacted by the GST. There is a quite increase in the tax rates, but the burden can be disappeared with time.
GST affect the service sector
GST affects the service sector for a short duration as the tax can be increased up to 18%. The cost of the products is decreased because of the GST. Thus, the consumers are overall in the beneficial side.
Manufacturing prices are fully revised
For some time, the manufacturer’s process has to be stopped to wait for the new revised list. Not only the manufacturing, GST has affected wholesalers and distributors as well.
Promote a smooth running of business
GST has changed many ruling taxes. This can provide a huge benefit to the business persons. Now, the whole process of filing the taxes is transparent and helps the government to get the best revenue.
The list is not complete here, but the wind of GST is overall good for everyone. It is a very intelligent move taken to improve the economy of India. Join the hands with Go GST Bill to get every single information about the GST.