What took a decade to roll out must be grand. And we cannot agree more. The GST bill is all set to spin India and emerge as a great success story for the entire nation. What will happen after GST rollout and when can we expect positive outcomes of the paradigm shift? Is there any real benefit from GST or is it just a political gimmick from BJP high power? These are questions which probably all Indians are juggling between. Here is everything you should know about this transformational tax regime. Take note.
How will the Aam Aadmi benefit post the GST Bill rollout?
An eye on the shopping bill and we would be cursing the government for charging too many taxes. While we bought stuff worth Rs 800, the cashier passes over the final billing amount of Rs 970-1000. A slew of taxes like VAT, CST, etc. has scaled up the burden on pockets. GST Bill roll out will effectively change this practice. A comprehensive tax will be charged on every product you buy. This makes the shopping and billing process seamless (and also saves bucks). Earlier, state and centre used to charge different taxes, now GST bill will include both the central government’s taxes as well as the state government’s taxes.
Will companies suffer due to GST?
As they say, “The only thing constant is change.” From the current regime to GST bill, companies will have to overhaul their accounting systems. Companies will have to incur one-time investment costs. However, GST bill will engender more consumption and spike up the manufacturing pace in the country.
Will Inflation increase after GST rollout?
GST bill rollout is followed by a higher inflation rate. Countries like Canada, Australia and New Zealand witnessed a higher inflation rate immediately after GST adoption. However, it was only a transitional hike; prices normalized and the economy stabilized after a year of GST bill rollout. Indian advisers too suggested that GST rollout will be followed by inflation. However the inflation can be avoided if the GST bill rate is pegged at 18%.
Who will benefit greatly from the new Tax Regime?
Sectors which integrate both goods and services have lucked out because of GST. Industries like Restaurant industry which is involved in both goods (raw material , stationery) and services (restaurant provides services). Assesses can claim deduction from the service tax on account of the tax levied on goods. Earlier, however, tax on goods could not be adjusted with service Tax.
Seamless Online procedure
GST bill is being adopted in the 21st century. It is bound to be backed by online support. GST will also simplify returns and filling systems. It will save time, money and compliances for the companies. GST registration can be completed online, unlike other earlier taxes like VAT, CST for which folks had to run errand from one office to another.
GST bill rollout will integrate the market, thereby ensuring that the small businessmen and top notch businesses are on the same page as far as the tax payments are concerned.
