GST Is Not Just a Tax Reform But Is a Social Transformation
This is not just an
economic measure. It means a social reform by ushering in a more transparent,
tax complaint society. For the consumer, It would reduce prices of
manufactured goods, for the government
it would mean increase tax collection
and fiscal consolidation and creation of a much simpler system to administer
through GST network (GSTN).
The experience of demonetization shows that popular sentiment in India is for a transparent corruption free economy where opposition to a tax complaint regime is waning with the time.
Conceptually, no one has a problem with the GST. It does away with the multiplicity of tax structures subsuming 18 central, state and local taxes. It results in a reduction of indirect taxes for the consumer, It creates ease of doing business by online registration, filling of returns and assessments. It is the only mechanism through which we can create one tax one market. We are looking at an objective, online transparent and complaint tax system.
For the businessmen who
are already registered under excise or VAT, the migration is simple and online.
Once registered they have to only capture transaction carefully at the point of
supply with full details. Rest; returns, input tax credit etc. will be
automatically extrapolated by the GSTN.
Traders etc., who’s turnover is below 20 lakh are exempt under GST. Those traders and manufactured etc.
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