Summary: Get to know a lot how GST will shape the Indian business realm, take a tour and enjoy the piece.
The much touted and controversial race over simplifying the tax structure in India is all set to reach its finish line come this fall. GST, the political football which brought a lot of ruckus in the parliament and many stalled sessions will ultimate turn active on the record with the start of the July, 2017. With the passage of the GST bill, the old and complex tax structure in India will rise with a strong optimism for a better tomorrow. All these times, the jealously among people with respect to their representation from different states and exploiting the benefit with a different tax structure will be long gone with the passage of the GST. The business remains the most enthusiastic clan to laud the passage of this bill. In this piece, you will come to know why the businesses have been jovial upon the decision to implement one tax policy across all states in India.
Why GST is the Panacea for the Business in India?
With the continuance of dual taxation policy which has been governing the Indian business realm, many of the businesses have felt the brunt of undue advantage given to different states based on the taxation laws. But with the implementation of the GST bill, the business sectors have been optimistic because of the following reasons.
- All this time in India, there has been a dual taxation policies dominating the states and the union territories. Such a practice has rendered some of the goods in the market produced in different states to end up being more competitive as compared to the same good produced in other states. Such differences have completely taken down on the competition and people prefer to buy from those states where they can get more benefit with respect to the taxation. But with the passage of the GST, such a scenario will no longer prevail. With one uniform GST, all the goods will have the same price anywhere in India. This will lead to a level playing field in the competition.
- In the current taxation system, due to different rates in different states, it is tough to manage the computation of taxes and creating of invoices. But with GST turning Pan India, one rate in the form of CGST and SGST will simplify the business dealings.
- Cascading effects of taxation has been a terrible set-off for the consumers, but with the implementation of the GST, the cascading effects of the taxation will be dealt away with.
GST will empower the state and the government to take a stand on the taxation which was not present earlier. The centre and state can decide on the tax structure and take necessary actions respectively.