On 1st July 2017, Finance minister introduced new tax system in India which is considered as the most significant post-independence tax reform. Goods and Services Tax – Abbreviated GST is levied as a tax on providing goods or services, and it is one of the indirect taxes. GST will be calculated in two different ways CGST for central government and SGST for state government earlier it was referred as Service Tax and VAT etc. The main agenda of GST is One Nation One Tax One Market; we will list out what are the advantages & disadvantages of GST on the Indian market.
Countries like Germany, Australia, Japan, Canada, and others have already implemented GST in their countries. All over the globe, there are roughly 120-130 countries where GST is already implemented there are both positive and negative impacts on their economies.
GST is a single taxation system that will lessen the number of other taxes. Earlier, indirect taxes were billed as the capital price of the product like VAT, service tax, etc. After GST a single tax term would cover those indirect taxes. So that this system would end up being beneficial for the individuals who are fed up of paying enormous rates, the Prices of products and services would decrease. GST Would reduce the load in the country and the central authorities. Separate taxes are imposed on goods and services that you produce. With the introduction of GST, each of these indirect taxations would come under one roof.
For many capital goods, input tax credit is not available. Full input tax credit under GST will mean a 12-14% drop in the cost of capital goods. Expected: A 6% rise in capital goods investment, 2% overall.Source
GST wouldn't be billed like other taxation so this manner, the market would be developed. GST would present taxation system that is corruption-free. The tax is levied from the site at the time of product release, and following that retailers pay it. According to the most recent reports, the introduction of GST would help India to get $15 billion every year.
Some Experts says that CGST (Central GST), SGST (State GST) are nothing but new names for Central Excise/Service Tax, VAT and CST. Hence, there is no major reduction in the number of tax layers. Source
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The majority of the taxation would begin coming under GST. The Central excise tax is levied at the time of manufacturing however GST is enforced till the selling stage. Processing tax isn't paid by most of the dealers and cheats the government. GST is a confused expression where taxation is levied billed in the name of a taxation system that is single. According to economists, the addition of GST in the country could impact property marketplace. This could increase home purchasing price and reduce buyers' economy by 12%.
This is my personal opinion on GST after some research and my knowledge on Goods and Service Tax