Goods And Services Tax (GST), a replacement for both Direct Tax and Indirect Tax, supports the slogan ‘One Country, One Tax‘.
The four bills, Central Goods and Services Tax (CGST), Integrated GST, Compensation GST and Union Territory GST Bills, passed in Lok Sabha to introduce GST regime.
Even though the government is planning to implement the GST from FY 2017-18, many know nothing about its Benefits and Drawbacks. To let you know all about the GST, we’ve detailed the advantages and disadvantages of GST. Here you can get the basic information on GST.
- GST replaces various central and state government taxes that includes Service Tax, Excise Duty, VAT, Entry Tax and Luxury Tax.
- The elimination of double charges will reduce the costs of Goods and Services and helps people to save money.
- Reduction in prices of Goods and Services increases the demand for the products and lets business people in getting huge profits.
- The businesses will recruit more people to withstand (meet) the demand which implies reduction in unemployment.
- Increase in demand and supply further enhances the GDP growth and there by increases the government’s revenue.
- Drawbacks Of GST – Disadvantages:
- However, the GST implementation imposes more tax plus cess on some goods like cigarettes, tobacco products, aerated drinks, demerit goods and luxury Goods and services.
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