Interesting ahh….well let me explain…
What is GST:
The Goods Service Tax (GST) is a Value Added Tax (VAT) to be implemented in India (Decision Pending), It will replace all indirect taxes levied on goods and services by the Indian Central and State
What are Indirect Taxes:
Indirect taxes are those paid by consumers when they buy goods and services. These include excise and customs duties.Customs duty is the charge levied when goods are imported into the country, and is paid by the importer or exporter.Excise duty is a levy paid by the manufacturer on items manufactured within the country. Usually, these charges are passed on to the consumer.
What are Direct Taxes:
These are the taxes that are levied on the income of individuals or organisations. Income tax,
corporate tax, inheritance tax are some instances of direct taxation.Income tax is the tax levied on
individual income from various sources like salaries, investments, interest etc.
Corporate tax is the tax paid by companies or firms on the incomes they earn.
GST is a value added tax to be levied on both goods and services (except for a list of exempted goods
and services), at both the centre and state level (Central GST and State GST respectively). This is a
single tax which will be levied on the product or service which is sold. In other words, multiple taxes
like VAT, central sales tax, state sales tax, octroi, etc will not exist and will be replaced by
GST. This comprehensive tax covers all stages from manufacture to sale. The tax will be levied only on
the value added at each stage of the life cycle.
How this will impact you and me…AAM Adami..
India’s reputation :
Well most importantly, This will increase “Brand India” value, This is one of the most important reform
which need to be there to showcase we are ready to board “Rocket of Growth”.
It will also build our democracy strong, hopefully there will be provision for adequate compensation to
Clear Tax Structure:
There will be only one Indirect TAX (GST).which will be linked across country, Think about corruption
in system, I stronly believe it will be less
Experts Claims that our GDP will boost at least by 1-2% if implemented successfully, more Jobs, more
Revenue, Govt can better plan with increased collection of revenue.
GST will eliminate all other forms of indirect taxing. This will effectively mean that the tax paid by
the final consumer will come down in most cases. Lower prices will help in boosting consumption, which
is again beneficial to companies. The biggest positive of GST is that goods and services will be taxed
on a common basis.
Boost to exports:
When the cost of production falls in the domestic market, Indian goods and services will be more
price-competitive in foreign markets, We can compete with other players like China,Indonesia and other
export oriented economies.
Dear Finance Minister , Don’t delay this anymore and lets implement and increase value of Brand India.
Guys – Think..you will have to spend less, More Invest, Happy Retirement, Can fullfil few more dreams..
So isn’t this saying true “GST GST ..please come soon”…