GST: Changing the face of Indian Business
GST around the world
GST is followed by more than hundred countries across the world. It has contributed effectively to the growth of counties like France, Britain and Canada. The introduction of GST in India is expected to restructure our economy. The paradigm shift is expected to increase the transparency in the taxation process.
Image source: businesstoday.in
GST will reduce the cut the indirect taxes levied in different sectors. More than thirty percent of the tax collection in our country is obtained from indirect taxes. The indirect taxes include the customs and excise taxes.
GST aims at reduction of cascading taxes and increase in tax base. It will also minimize the tax slabs to reduce classification problems. It will create a healthy competition among the states.
GST is expected to boost our image and economy globally by becoming one of the business friendly countries. It promises to encourage entrepreneurship and investment since decisions will be taken only on economic grounds and not on tax issues.
Winners and losers
- Effective tax on goods is expected to get reduced and a fair amount of agricultural products may get tax exemption to boost agriculture. The price of automobiles may fall by ten percent. It will also bridge the gap in prices between unorganized and organized sectors. Logistic companies will also reap benefits from GST.
- The people will face increase in cinema tickets. Postpaid telecom subscribers will face an increase in fares. The charges for banking transactions will also be increased due to GST which will affect all sectors of the society.
- Other sectors like pharmacy, textiles will not have a major impact because of GST. Experts feel that GST will not have a major impact on inflation.