Why should we allow GST to replace the Current Tax Scenario ?

Screenshot_12The proposed GST bill aims to introduce a goods and services tax (GST) which will subsume various indirect taxes, including Excise Duty, Countervailing Duty, Service Tax, value added tax (VAT), entry tax, entertainment tax, etc. which makes our grocery goods to a multiplex ticket cost raised upto 40% and that is too much.

When GST will be introduced the price of a product will become reduced. A fall in price generally increases the product demand. Not only the price reduces but also the working capital too. GST makes the price of a product unique throughout the country which makes it more interesting.

In GST both Central GST and State GST will be charged on manufacturing cost and will be collected on point of sale not like current scenario where tax is levied on all stages.

The proposed rate of GST is about 16%-17% which is much lesser when compared with the current rate of taxation. As per current tax pattern, the tax rates are about 35%-40%.

Its introduction would be a very significant step as it is expected to raise India’s GDP by up to 2 percent. The bill has already been passed in the Lok Sabha and is awaiting its passage in the Rajya Sabha and THE TAXPAYER INDIAN believes that we should support it for a good cause.

 

This content is from e-Filing portal

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Posted on March 28, 2016, in Business Registration, Company Registration, service tax registration and tagged , , . Bookmark the permalink. Leave a comment.

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