As we know, GST, also named one nation one tax, is an indirect tax that is levied on almost all goods and services. It has a towering presence in the taxation system of India. To date, nearly 160 countries have designed and followed the GST regime. In this article we will discuss on Impact Of GST Regime on common man.
Impact Of GST Regime
The GST regime came into effect from 1 July 2017 by One Hundred and First Amendment of the Constitution of India authorized by the government of India that will affect the country’s 2.4 trillion-dollar economy. The GST has replaced all the existing, indirect numerous taxes imposed by the central and state governments.
Advantages to Common Man by GST Regime
Though GST has been implemented in recent years, its hidden advantages for the common man are coming into the limelight slowly and steadily.
From a macro-level perspective, Here is a value chain of activities that will eventually benefit the common man.
Since GST has decreased the tax burden on the manufacturing sector, accordingly prices of consumer goods like FMCG, cars, and so on have come down to a great extent. Notably, the customer has to incur less expenditure on goods produced by manufacturing. In consequence, evaluating the law of demand, the consumption of goods and services will rise as a result of a decline in price
The heightened demand will motivate manufacturers to supply more commodities. As a result, production will gain momentum. A gain in production will compel more employees and there will be more job chances for the common man.
Objection of Goods and Services Tax regime
GST is not the similar for all goods and services. Now, there is a tax slab of 18 per cent on many services and may attain up to 28 per cent for few services in the near future. Consequently, many services like banking, telecom, and airlines will become more valuable in the forthcoming years.
So, the common man has to resize his budget. The domain of GST is still uncommon to most businessmen and assistance providers, due to which they hire tax professionals and this leads to an increase in monthly expenses.
Implication of GST Regime
GST has been implicating the lives of billions of people every day with rate additions and specific relaxation from previous tax rates. The rate has provided a reasonable way to see the taxation in the country and the additional bifurcation of the GST rate will be acquainted as per the government sources.
Also, GST has also provided a partial way to tax overall GDP ongoing and has appear with the terms at par with numerous bigger economies around the world. Still, a considerable amount of time will be taken to evaluate the impact of GST by the economic experts in the coming time.
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