Goods and Service Tax
The abbreviation of GST is Goods and Services Tax. The concept was derived by the vision, one nation one tax. It is to facilitate the businesses of a nation to be globally competitive. Recently in India, it has become the word of storm. Away from the varied thoughts on it, Indian GST case is controlled for well-organized tax assortment, money off when it comes to corruption, effortless goods exchange within the state and many more.
The chief country to scheme the Goods and Service Tax to lessen tax- avoidance was France. Subsequently, an additional 140 countries or greater have employed GST with some countries possessing Dual-Goods and Service Tax model like Brazil, Canada etc. India has chosen the Dual-GST model which is the same as Canada’s. Goods and Service Tax, when compared with the common wealth countries, is quite similar with some variations. There are other countries that have a higher acceptance of GST because of the small business benefits which are distinct from India.
In every one of our minds, there is a question on the globally hit nation, The USA. What about this superpower, do they have Goods and Service Tax in their nation? No, USA does not have Goods and Service Tax as it ensures high autonomy for the states.
GST and Its Pros
- Tax harmonization
- Further easy movement of goods amongst states of the country.
- It is designed on the total amount, regardless of the type of sales/services.
- It has eliminated the falling effect of taxes by familiarising a unified tax system.
- In the meantime, it is a purpose based tax, the tax can be paid by the customer for the delivery of goods.
GST and Its Cons
- Lack of explanation about tax holidays has additional enlarged process costs for manufacturing industries mainly textile and pharma industries.
- The confusion between dealings has broken up creating a trouble in the trade.
- Patrons are not actually optimistic about GST welfares and operation and consequently, they are disinclined to adjust to the new system.
- The tax rate has been augmented for many goods, therefore raising their costs.