All you want know about GST,India 2017
GST, as it name suggest Goods & Service Tax. First of all we have to understand current tax system to understand GST. If we talk about current tax system, there are basically to types of tax we usually pay.Direct and Indirect taxes. GST will only be applicable on indirect taxes.Now direct taxes are those tax we pay tax on our income and indirect tax are those tax which are paid when we use or buy any product or services.Almost every individual pay tax to government as indirect tax are present everywhere. If you buy a biscuit or cold drink or you just recharge your phone with any Top Up scheme you are paying tax. Now the current tax system is like at every level of its manufacture or transport are levied on us.
GST is like regulating all the taxes to one. As government is saying One Nation One Tax.Now in GST it will happen that all the goods will be put under on slab of tax percentage. So their are different tax slab where each and every commodity will be categorized. So it will happen that price of that single product will be same across the country. Earlier it was like if state government has low tax rate for any product then that product used to cheaper in that state.
Now from my point of view GST is not going to change or we can say that it is going bring down the product prices as it is said. We will only observe a minimal difference before and after GST. Now then why GST,the purpose of government to implement GST is to keep a track on taxes. GST is going to impact business and manufacturing companies. Now every company will be given a GST number from which they will be identified. Now if any wholesale dealer sells any good to any other retailer or other wholesale dealer then he has to give GST number of that retailer or dealer. So government will come to know that this quantity of good was purchased by this company or retailer and if that retailer tries to cheat government by showing less income then he will be easily caught.
So GST is more of fighting corruption & smoothing tax system rather than lowering prices of products.So what to think of GST, are you in favour or against GST do let me know.
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