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What are the effects of GST?

Open uri20170510 32134 ughyv5?1494421703 asked

What are the good sides and the bad sides of GST (goods and services tax)?

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2 Answers
Open uri20170510 32134 ng4pv?1494421709 answered

**GOOD SIDES OF GST :-** 1. Biggest benefit is that Gst will reduce multiple taxes like central sales tax, state sales tax, entry tax, license fees, Professional tax etc , all this taxes will be brought under the GST. 2. Since retailer will get input credit of GST paid by them therefore it will not act as cost to them , therefore will be no hidden taxes and the cost of doing business will be lower. 3. Input credit will be given at each stage of distribution channel by which the price of a product will reduce. 4.Gst will build build a transparent and corruption-free tax administration. 5. It will increase tax collections due to wide coverage of goods and services . **BAD SIDES OF GST** 1. GSt is a tax burden for low Income earners since higher portion of their income will go in paying GST , making GST a regressive tax. GST can be progressive if the government taxes more on luxuries and less on necessities. 2. CGST, SGST and IGST are nothing but new names for Central Excise/Service Tax, VAT and CST and hence GST brings nothing new for which we should cheer. **strong text**Overall, GST brings more benefits than harms to society.

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Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 answered

The good side is that the rate of GST will be uniform across all state and central levels as it will replace all the existing indirect taxes like VAT, CST, EXCISE and Service tax , but it will be charged and paid separately for both i.e. state and for the central level

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