Trade & Industry

One Year of GST- Happiness Together !

With some of the breath-taking events happened around the world in the year 2017-18, a major event happened in India too. The Goods and Service Tax was implemented through out the country in a one go. This was one of the major event in the history of the nation where an idea of one nation one tax that has been mooted since long has been brought into reality. On, July 1 the tax regime will be completing its one year of implementation. Though it is having mixed feelings among the people as well as the business fraternity, let us have some insights into one year of GST implementation.

Prior to GST implementation the goods and services had to undergo the multiplicity of taxation. This multiplicity led to the taxes on taxes which were ultimately borne by the common man or one who was supposed to consume the particular good or service. With the GST regime in implementation, these multi taxation was removed with one nation one tax regime. Under this there is a single tax on a good or service throughout the country. This has led to uniformity of taxation as well as single pricing through- out the nation. The common man is benefited to a great extent by this. Now he can choose any product or service of his choice in any part of the country with same taxation throughout.

Another implication of the GST regime led to the equal sharing of the taxation revenue between the center and states. Prior to the GST the taxation revenue sharing between the center and the states was unequal. This has also led to the strained relationship between the center and the states in the past. Now with the equal revenue sharing of the revenue between the center and the states, all have been brought at the equal footing. This has also led to the increased in the revenue generation of the states which will help them to transfer the same to the people in the form of greater social, economic, healthy and competitive development.

The third silver lining of the GST regime is the seamless movement of the goods through out the country. With the single GST bill registration, the movement of the goods between interstate as well as intra state has been improved. This has helped to improve the logistic costs as well as logistic delays. This will surely help to improve our country’s image in ease of doing business. The GST is a destination-based tax. It will be levied not on the production side but on the consumption or the destination side. This will help to improve the production strategies. This may also lead to improve our exports more competitive as well as may lessen our dependency on exports.

The GST is hailed as one of the single largest reform of our country. Though it had initial doldrums in its implementation coz of the complexities of the goods and services used in our country as well as the geographical spread of the nation. We must keep in mind that every dark cloud has silver lining. With initial hiccups in rolling as well as registrations, frequent changes in the tax slabs of the goods, now the it seems to be settled one. In a nutshell let us have a look at some of the benefits of the GST

  • The One Nation One Tax has explicitly shown, how cooperative federalism can help to solve the long-standing issues of the nation.

  • This cooperative federalism is also an example to the world to take unanimous decisions in the interest of the nation.

  • GST has helped to find a common ground for center and states.

  • PM Modi has hailed it as the “Honest tax” as well as the “Victory of integrity as well as the celebration of the honesty”.

  • This will help to further reduce the inspector raj.

  • Will help to improve India’s ranking in “Ease of doing Business”.

  • Will help to boost the “Make in India” campaign.

  • Will help to improve the overall employment generation.

  • Will help to reduce the taxation fear in the minds of common man.

Just one year at completion and many more to come, GST will surely help to phase out the initial distress involved in it and will be hailed as one of the biggest taxation reforms of the country.

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