GST Bill Advantages and Disadvantages
we all know that GST Bill in Rajya Sabha is Passed on 3rd August 2016. Now, this Bill is in the process to Make a Law in India after a certain process. As of Now the Tax rates and the process of it are not Cleared. Therefore India is not cleared about the GST Bill advantages and disadvantages.
once the act will applicable there are many products which will be cheaper. On the other hand, some of the products will be costlier. We have to pay more to purchase those products. Price Factor is the main points why merits and demerits of Gst Bill are in News.
GST Bill Advantages and Disadvantages are as follows:
Advantages of GST Bill
This model is a single Tax model and Tax on Tax will be removed. Many Indirect Taxes will be merged as Single Tax.
After the implication of Goods and Service Tax act India will be one market.
Now Excise and some other taxes are applicable at the manufacturing Point. After this these will applicable at consumption point.This system will effect the evasion and theft of Tax will be minimized as it is easy to track. This may be the demerit of GST for Tax Evaders.
Advantages of GST to Citizens:
- Simplified and Transparent tax system to all
- Reduction in Sales price of Mandatory goods due to less GST Rates and elimination of cascading
- One Tax Rate throughout the country results in Same Price of goods
- With New type of Tax there will be Increase in employment opportunities
Advantages of GST to Trade:
- Double taxation will be End. No Tax over the Tax Now
- Advantages of GST to Trade is that it will promote Exports with single type of Tax
- One India One Market
- Simplified Tax System.
- Get Input credit on all Purchases and services
All the Products where multiple taxes where applicable will be cheaper like excise duty and vat both will come to about 30% of Tax but in GST it is assumed to be 18-20%. Above were the advantages of GST bill and now I will show you some Disadvantages of GST bill in India. This is the losses which will effect you only in short term and may not be painful for you in the long run if the system will work properly.
Disadvantages of GST Bill in India
The Service Tax in India is now 15% but the proposed GST is about 18-20%. All the services will be Costlier and this one of the Disadvantages of GST Bill on Common Person.
There are some retail products where the Tax rate is only 4 percent but with GST it will be costlier like
Garments and cloths.
The control on business will be of state and central government so it may be some complex for the businessman.
All credits will be online and some penalties are like criminal activity. So it is threatening for the small businessman who is now free from Taxes.
GST is also having three type of taxes and all have to be maintained and this not going too easy for small Businessman.
Above are the GST Bill advantages and disadvantages in India and as per me, it will be more comfortable than the existing Tax Process in India.
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