What is GST bill? and how it will affect the economy? I think you all had heard about GST Bill, which is in news from last many days. However, what is GST Bill in India?
GST means Goods and services Tax. This is a Type of tax, which evades all other indirect taxes in India. This clearly means that you have to pay only one Indirect Tax in India. Many economists suppose that after the application of GST the GDP of India will raise up to 2-3%. This will really make a significant change in the economy.
What is GST Bill?
GST means a comprehensive Indirect Tax on Sellers and manufacturers. This will apply to Sale and purchase of goods n
services in India. This will replace all other types of Indirect taxes levied by the Central and state Government.
Like Excise Duty, Entertainment Tax, VAT, CVAT, Service Tax etc.
It will be applicable and collected at every point of service, sale, and purchase of Products based on input tax.
GST bill in India is a type of tax, which supersedes all other Indirect Taxes stated as above. GST Bill will give a comfort of paying only a single tax. This also getting the input tax credits of what earlier paid on the same. By this, it will save tax on tax.
There are many advantages and disadvantages of GST. Nevertheless, the main benefit of it is the relief and peace of mind, which gives you more business and more revenue. A Big Demerit of GST will be the hike in prices of some services and goods.
This kind of Tax system already adopted by the major developed countries. I also personally think that there must not be too much type of Taxes.
GST Bill has already approved from Rajya-sabha and Lok-sabha and now it is into the process of approval of GST Bill from states.
I believe that GST bill in India will give a boom to an economy and there will be more business and more jobs.