7/7/2017 What are the good sides and the bad sides of GST (goods and services tax)?

sides of GST (goods and services tax)? - Quora

Goods and Services Tax India (GST) Economics

What are the good sides and the bad sides of GST Related Questions

(goods and services tax)? Is GST good or bad?

for us, the consumers as well as for the country
What is the good and the bad side of GST?
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Who does the Goods and Services Tax (GST) in India
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on the financial market of a country?

Can GST (Goods and Services Tax) really make any

22 Answers difference?

How will the introduction of a GST (goods & service

Harleen Kaur, CA, Finance blogger by passion, Co-founder @ ntrakk.com
tax) affect the C&F agents? Will new jobs be created
Answered Jan 31
or reduced?
GST bill covers the Goods and Services Tax and shall be the biggest indirect tax
Is the Indian GST good or bad?
reform providing a uniform and simplied way of Indirect taxation in India.Once
introduced it will replace a number of other taxes like VAT,CST,Service tax,CAD,SAD, Will the proposed Goods and Services Tax (GST)
boost the Indian economy?
Excise,Entry tax,purchase tax etc.

GST or Goods and Services Tax - A new law,a new tax will bring with it new Question Stats
challenges to face.
82 Public Followers
The basic idea for introducing GST is converting India into a single market.This
194,180 Views
might have a positive impact on GDP of India and help to boost the Indian economy.
Last Asked Nov 6, 2016

Dual system of GST includes : Edits

1. SGST or State GST - collected by State Government.

2. CGST or Central GST - collected by Central Government.

3. IGST or Integrated GST - collected by Central Government.

Positive Impact of GST :

A unied tax system removing a bundle of indirect taxes.

Less tax compliance.

Removes cascading eect of taxes.

Manufacturing costs will be reduced,hence prices of consumer goods likely

to come down.

Due to reduced costs some products like cars,FMCG etc.will become cheaper.

A unied tax regime will lead to less corruption which will indirectly aect
the common man.

Hence,this is possible only if the benet is actually passed on to the consumers.

Negative Impact of GST :

Services will become expensive.e.g.Telecom,banking,airline etc.

Being a new tax,it will take some time for the people to understand its
implications.

It is easier said than done.There are always some complications attached. It

is a consumption based tax,so in case of services the place where service is
provided needs to be determined.

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7/7/2017 What are the good sides and the bad sides of GST (goods and services tax)? - Quora

If actual benet is not passed to consumer and seller increases his prot
margin,the prices of goods can also see a rising trend.

However,GST is a long term strategy and the positive impact shall be seen in the long
run only.

Let us hope GST proves to be a game changer in a positive way and proves to be
benecial to the common man.

For details on GST you can refer : GST : What is the impact of GST on the common
man ?
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Sameer Ahmed, Associate Manager - Digital Marketing at KloudData

(2013-present)
Answered Apr 21

GST or Goods and Services Tax Bill aims to create a uniform tax structure pan-
India, removing several layers of taxation such as purchase tax, VAT or Sales Tax,
state-level taxes like, entertainment tax, excise duty, entry tax, luxury tax and octroi.
As per various analysts, GST Bill can increase Indias GDP by 2%.

KloudData SAP GST Solutions

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Arpan Pandey, counsellor (2016-present)

Answered Jul 1

One Nation, One Tax

Every middle class person struggles to fulll his and his family needs. He always get
stuck between dierent charges, in the name of VAT, service charges, swach Bharat
taxes and so many others. A simple coee which is of 195 rupees after adding up tall
the taxes it comes to 263 Rs.

Goods and Services Tax India (GST) was rolled out at midnight. All of the newspaper
were ooded this news as a boom. Most of the Economist is believing that this is

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7/7/2017 What are the good sides and the bad sides of GST (goods and services tax)? - Quora

going to impact every Indian as prices of a large number of goods and services have
been changed now. The GST Council has xed the tax rates for 1,211 items, keeping a
majority of these in the 18% slab.

Good news for consumer as the government has issued this thing to pass on the
benets from lower tax rate to consumers.

The GST Council has bracketed all the goods and services in the country in ve
categories 0 per cent, 5 per cent, 12 per cent, 18 per cent and 28 per cent.

I think (this time government is thinking the same) that it will reduce the burden on
consumers. However, some of the items will now be taxed at higher rate.

The government has imposed the tax rates in a way that essential services and food
items remain in the lower tax bracket and luxury services and products attract higher
tax. For example

5%

12%

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7/7/2017 What are the good sides and the bad sides of GST (goods and services tax)? - Quora

18%

28%

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7/7/2017 What are the good sides and the bad sides of GST (goods and services tax)? - Quora

image courtesy:- GST on lifestyle and home: Know your new tax brackets

For more details of the things, that get cheaper visit:- GST rate guide: Know all the
things that will get cheaper after midnight

So apart from pocket friendly GST, let us discuss about some more Benets :-

GST will reduce the complexity of taxes.

Can facilitate seamless movement of goods across states.

Reduces the transaction costs of businesses.

The procedure of GST registration would also be made simple, thereby

improving the ease of starting a business in India.

There are expectations among experts that with GST, we may see 2% jump in
GDP growth.

GST will plug the leakage of tax. This, in turn, gives more money in the
government exchequer.

Companies which are under unorganized sector will come under the tax
regime.

Number of tax departments will reduce which in turn may lead to less
corruption.

In the long run, the lower tax burden can decrease the prices of goods and
services.

Challenges

The main road block is the coordination among states and center and states.

Another major hurdle is getting the constitution amended by agreement of

both the houses.

Consensus on uniform GST rates

Inter-state transaction of goods and services

Administrative eciency

Infrastructural preparedness to implement the new tax reform

Criticisms

Some has argued that, whatever federal powers were bestowed upon States
by virtue of their powers to tax, will be lost once the GST Bill becomes law.

As per the current arrangements, dispute settlement would be subjected to

lengthy court procedures, if the Council is opposed, as GST Dispute
Settlement Authority in the proposed Bill will only comply with the
jurisdiction of the Supreme Court.

India is adopting a dual GST, wherein the Central GST will be called CGST
and state SGST.

Some critics consider GST to be a regressive tax, meaning the poor pay more,
as a percentage of their income, than the rich.

Opposition wants a provision capping the GST rate at 18 per cent to be added
to the Bill itself.

Deferring the levy of GST on ve petroleum products could lead to cascading

of taxes.
1
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Additional 1% tax levied on goods that are transported across states dilutes
the objective of creating a harmonized national market for goods and
services.

Inter-state trade of a good would be more expensive than intra-state trade,

with the burden being borne by retail consumers. source :- Editorial Today
All you need to know about GST

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7/7/2017 What are the good sides and the bad sides of GST (goods and services tax)? - Quora

Apart from everything about GST, I just liked the anti-proteering clause. The anti-
proteering clause in the GST law mandates that all businesses have to pass on the...
(more)

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Soumya Prusty, Freelancer at Truelancer.com

Answered Jun 24

impacts of GST is greatly varied. here are some positive as well as negative sides as
well as impacts of GST and its implementation.

POSITIVE IMPACTS OF GST-

GST 2017 law is a unied taxation system that will reduce indirect taxes like
central excise, VAT, service tax, etc.

Manufacturing costs to be reduced, hence prices of goods and services likely

to come down.

GST would introduce corruption free taxation system.

GST would not be charged at every point of sale like other indirect taxes so
this way, the market would be developed.

Positive impact on the central and state level-

Improved exports

More opportunities for employment

Reduced burden on central and state government

Enhanced economic growth

NEGATIVE IMPACTS OF GST-

The introduction of GST 2017 Law would aect the real-estate market. This
would increase new home buying price by 8% and reduce buyers by 12%.

GST is a confusing term where double tax is charged in the name of a single
taxation system.

Services will become expensive like e.g. telecom, banking, and airline.

Being a new system, it will take some time for the people to understand its
implications.

it is very important to understand GST as it is going to create a lot of ripples in the

markets and commercial platforms. for this, contentmart. com has come up with an
excellent article on their blog that is must-read if you need to understand GST.

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7/7/2017 What are the good sides and the bad sides of GST (goods and services tax)? - Quora

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