please provide the answers of[ c ; d ; e. ; f; g ] questions in an short free tomorrow is my Economics Viva in which the questions from GST topic arise(
(c) The Goods and Services Tax which is being implemented from 1st July, 2017 is proposed to be a unified tax for the entire nation. The intended objective of GST 2017 is to replace a lot of other indirect and direct taxes like the VAT, service tax, luxury tax etc. GST is aimed at being comprehensive with most of the goods and services included in the GST bill but alcohol and petrol exempted. GST rate is proposed to be 27% which is far higher than the global standard of 16.4% for similar taxes.
GST objectives:
- Ensuring that the cascading effect of tax on tax will be eliminated.
- Improving the competitiveness of the original goods and services, thereby improving the GDP rate too.
- Ensuring the availability of input credit across the value chain.
- Reducing the complications in tax administration and compliance.
- Making a unified law involving all the tax bases, laws and administration procedures across the country.
- Decreasing the unhealthy competition among the states due to taxes and revenues.
- Reducing the tax slab rates to avoid further clarification issues.
(e) Yes, the government will get benefits from gst in following ways:
1.Uniformity in Taxation
The objective of GST is to drive India towards becoming an integrated economy by charging uniform tax rates and eliminating economic barriers, thereby making the country a common national market. The subsuming of the aforementioned State and Central indirect taxes into just one tax will also provide a major lift to the Government’s ‘Make in India’ campaign, as goods that are produced or supplied in the country will be competitive not only in national markets, but in the international ones as well. Moreover, IGST (Integrated Goods and Services Tax) will be levied on all imported goods. IGST will be equal to State GST + Central GST, more or less, thus bringing uniformity in taxation on both local as well as imported goods.
2.Helping Government Revenue Find Buoyancy
GST is forecast to help the Government Revenue find buoyancy by expanding the tax base whilst enhancing the taxpayer compliance. The reform is also expected to improve the country’s ranking so far as the ‘Ease of Doing Business Index’ is concerned. To add to it, it is also estimated to enhance the GDP by 1.5% - 2%.
3.Cascading of Taxes
The cascading of taxes will be prevented by GST as the whole supply chain will get an all-inclusive input tax credit mechanism. Business operations can be streamlined at each stage of supply thanks to the seamless accessibility to input tax credit across products or services.
4.Simpler and Lesser Number of Compliances
Compliance will be simpler through the harmonisation of tax rates, procedures, and laws. Synergies and efficiencies are expected across the board thanks to common formats/forms, common definitions, and common interface via the GST portal. Inter-state disputes such as those on e-commerce taxation and entry tax that currently prevail will no longer cause concerns, while multiple taxation on the same transactions will also be removed. Compliance costs will also reduce as a result.
Please upload other questions in different thread.
Regards