After the independence this is considered to be the highly significant tax reform, as it is something to deal with the third largest economy of Asia, now
Economy in India is of the order of trillions. The 2 trillion economies constitute consumers exceeding 1.30 billion. Honestly it is only exclusive single market, isn’t it?
GST bill, the Goods and the services tax bill passed on Wednesday evening recently in the parliament, after so many years of filibustering between the two parties that are in the ruling and the opposition roles currently.
The GST subsumes the country’s messy plethora for indirect taxes, surcharges and duties, surcharges all into a single tax reform. This is anticipated to –
- Ease the complex tax system
- Facilitate the goods to be moved in the right direction across state borders
- Stop tax evasion
- Enhance compliance
- Raise the revenues
- Trigger growth
- Stimulate investors to invest more
- Facilitate doing business in India much more easier to the overseas investors
Complex parts of GST
About one hundred and sixty countries across the world, today, do have the value added tax or the GST, as per the information from the Deloitte, consultancy firm. Dual GST policy in India is going to be implemented by the federal and the State governments together. It goes to reveal that there are 38 different tax types as a set, to focus here.
The GST tax reform can be suitable for the twenty nine states of the country and also for the federally administrated union territories that are seven in number.
- It is an integrate GST to be applied well for the interstate goods and services
- Fiscal unification is seldom seen in this touch
- What promises here in the countries tax reforms is anticipated to be serviced by the world class, technology.
Colossal electronic infrastructure is being constructed by the Software big league player in the country, Infosys- a GST portal – all the taxpayers can register, in this portal, to make payments and file their tax returns. Guess what now? There are about 8 million businesses that are now covered by this tax reform.
You could say it to be a minor miracle just because of the colossal changes it is to bring in. such a reform of this scale has never been attempted by any country with such comparable size of turnover.
We are not sure if all the small businesses are ready for the tax, though.