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Goods and Services Tax (GST) – India's new love affair with indirect taxes
The historic moment in India's economic history was implemented by singing paeans and pressing of button by honorable Prime Minister of the country on the midnight of 30th June, 2017 at the Central Hall of the Parliament.

Goods and Services Tax (GST) ends the war between states, as they have all agreed to one rate across the country in principle. GST will foster the economy and also give it a tremendous boost. It will provide relief to businessmen, traders, manufactures and consumers at large by replacing various indirect taxes levied by the Central and state governments.

GST is the biggest tax and economic reform introduced since 70 years of independence. Finally, the dream of 'One Nation, One Tax' came true after 13 years of waiting since it was first discussed in the report of the Kelkar Task Force on Indirect Taxes. The main aim behind introduction of GST is to simplify trade.

GST replaces all indirect taxes like excise, service tax, VAT, entertainment tax, octroi/LBT, purchase tax etc. GST council is the apex body created by the Parliament for governance of this act. It includes Finance Secretaries of Central as well as various state governments. GST registration is mandatory if your annual turnover is Rs 20 lakh or above. Immovable property in not taxable under GST. GST rating will be given in consideration of timely filling of returns, timely GST payments and other disciplines followed by the assessee. Hence, GST ratings would be beneficial while selecting suppliers for your business, and also for bankers whileissuing loans to the assessee. No revised return is allowed under GST.

GST benefits:

  1. Easy compliance: All tax payers can easily pay tax through comprehensive IT systems (which are backbone for GST) which would make compliance easy and transparent. Compliance will lead to simple and easier administration.

  2. Uniformity of tax rate: GST is a merger of 17 taxes and 33 cesses across the country. Now there will be only one indirect tax.

  3. Single and transparent tax: One tax will be levied on the value of goods and services which will stop hidden taxes. So final consumer will be aware of transparency of taxes paid by him.

  4. Common return would serve the purpose of both Central and state government, so assessee need not file multiple returns.

  5. All the taxes and payments will be made electronically so no wastage of paper at any stage.

A National Council of Applied Economic Research report says that GDP will lead to an additional 1-2 per cent growth. Also, a US FederalReserve report has claimedthat GST would boost India's growth by 4 per cent.

All citizens of country are complimenting Hon'ble Prime Minister Narendra Modi for implementing India's biggest tax reform till date which is expected to redefine indirect taxation in India.

GST will be a boon for business and industry by providing easy compliance, uniformity of tax rates and structure. People believe that the Indian economyis heading in the right direction.

Editorial NOTE: This article is categorized under Opinion Section. The views expressed in this article are solely those of the author and do not necessarily represent the views of merinews.com. In case you have a opposing view, please click here to share the same in the comments section.
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