There have been a lot of talks going on GST and where some people are curious to know that what exactly it is, others are looking for the measures that will help them implement this tax with ease and efficiency. So, till this date, we all have been paying taxes in the form of luxury tax, value added tax, service tax, import tax and in many other ways but the Goods and Service Tax (GST) is a little different to the other taxes that we pay for purchasing goods and services.
GST is basically a tax system where you will not have to pay indirect taxes in different forms as all the indirect taxes will be counted in one tax system which is GST. This will actually scarp all other taxes that are levied on different goods and services and one total some of GST will be added as the tax on any product or service that you buy.
GST is also one of the most pending issues that the government has been trying to apply to make taxation simple and easy to understand for the common man as well and this is the time when we are just on the door to welcome this new taxation system.
The percentage of GST will depend on the goods or services that you purchase and it will also make it easy for you to calculate the amount of the indirect tax that you need to pay while buying anything. The calculation of GST will certainly be really simple as compared to the various taxes that are added in any purchase in the present situation.
The question comes that what are the benefits of GST and how it will it impact the common man?
Here are the 5 top advantages of this taxation system that will make you understand it in a better way:
Simple tax system: Most of the time people find it really confusing while paying indirect taxes, be it a bill in a restaurant or at other places but this issue will be resolved with GST coming into the picture as it will make the tax calculation easy to understand.
Lower Tax: In future, the lower tax amount will also decrease the total amount of good and services and thus the end customer will also be able to save some amount on their purchases.
Less number of departments: There are many numbers of people that are working for calculating and implementing different taxes but GST will help in reducing the number of departments that work for taxes and this will also prove really effective in less corruption as well.
Transparency: GST will help even a less-educated person to know that how much amount he/she has to pay as an indirect tax, this will help in more transparency while paying for the purchases that one makes.
It will help in GDP growth: Along with other benefits, GST will also provide a boost to the GDP by 1 to 2% and this will help in easy transfer of good and services all across the country.
As we have talked about the benefits of GST, let us also have a look at importance of it. Here are 5 top points to understand the importance of the GST bill:
It will be a uniform tax: Presently, all the taxes we pay are divided, for example you have to pay value added tax, service tax, Swach Bharat cess and the total of it is added in the actual amount of your purchase but GST is a tax that is calculated as a single tax system and t will replace all the above-mentioned taxes. Uniformity has been always a problem with the tax system and GST is all what we needed to help us to overcome this issue.
It will replace all the taxes: Till now different states have different tax rule but with the advent of GST all the taxes that are levied by the government, both state and center will be same. This is the most important thing as it will bring more transparency for the consumers around the country.
Tax as per items: The poor and the rich both have been paying same amount of indirect taxes but with GST the poor will have to pay a less amount of percentage of tax and the tax percentage will increase on the items of luxury. This is important for the poor sect of the country.
Beneficial for the economy: This is one of the most important things for a country to grow and with the GST bill it will help in boosting the economy as well as it will increase the purchasing power of people.
Tax that is made for common man: There are many people in India who still not understand that why they have to pay an extra amount on any purchase, GST in an important step to make everyone understand that how much money one is actually paying as tax on a purchase.
So, the wait is about to get over as GST will be there to make taxation simpler for us!