Preface for project on GST & its impact on GDP
Dear student
Impact of GST
The main aim of Goods and Services Tax is to eliminate all layers of tax structure such as purchase tax, VAT/Sales tax, state level taxes like excise duty, entertainment tax, entry tax, Octopi , luxury tax etc.
1) Air travel, Hotels, will become costlier. Before GST ,Economy class tickets are taxed 6% and non-economy class are at 9%. After the implementation of GST these tickets will be taxed between 18% to 20%
. 2) Insurance premiums , investments, branded clothes, branded jewellery, cigarettes, will become very costly after implementation of GST.
3) The rates of GST proposed is higher than the current VAT rate in India, which in long run reducing the price therefore there will be no help in cutting down prices of commodities.
4) After GST a business will now be indirectly controlled by both the Centre and the State in all tax related matters. So Now States will lose autonomy to change the tax rate which will be regulated by the GST Council.
5) As GST is mostly related to the manufacturing segment, most of the manufacturing states may incur losses. But government had proposed to compensate for these losses for a period of 5 years.
Regards
Impact of GST
The main aim of Goods and Services Tax is to eliminate all layers of tax structure such as purchase tax, VAT/Sales tax, state level taxes like excise duty, entertainment tax, entry tax, Octopi , luxury tax etc.
1) Air travel, Hotels, will become costlier. Before GST ,Economy class tickets are taxed 6% and non-economy class are at 9%. After the implementation of GST these tickets will be taxed between 18% to 20%
. 2) Insurance premiums , investments, branded clothes, branded jewellery, cigarettes, will become very costly after implementation of GST.
3) The rates of GST proposed is higher than the current VAT rate in India, which in long run reducing the price therefore there will be no help in cutting down prices of commodities.
4) After GST a business will now be indirectly controlled by both the Centre and the State in all tax related matters. So Now States will lose autonomy to change the tax rate which will be regulated by the GST Council.
5) As GST is mostly related to the manufacturing segment, most of the manufacturing states may incur losses. But government had proposed to compensate for these losses for a period of 5 years.
Regards