GST ROADMAP N IMPLEMENTATION
GST is implemented in India and people are still confused with this new tax regime. Critics are wearing their opinion for an ideal GST by differentiating between its Indian and global versions. Generally, when GST is implemented in any country, a single rate of interest is levied all over that specific country to develop a perfectly unified indirect tax system. But in the case of India there are five GST tax slabs levied to all goods and there is especially service tax as well. This article will discuss the roadmap towards an ideal GST.
Whether it is a new tax regime or a new development process, implementation in a diverse country like India is not an easy job. However, after implementation, it always takes time for a country to completely revamp its system as per the new development standards. India at 70 years since its independence still is a country with a developing economic system. When seventy years are not enough time for a nation like India to completely grow up to a developed economy, similarly; arriving at an ideal GST system will take at least ten years for India according to the experts. Before discussing the roadmap to an ideal GST, let’s find what GST is in India for every stakeholder now:
GST for business:
Most of the businesses houses enter into a comfort zone after getting registered in the GST portal. The tax compliance systems are easier now. The goods are moving smoothly crossing various states’ borders with the elimination of the traditional check posts. The post GST taxes are relatively lower than the previous indirect taxation system. In Addition to this, digital and online GST system make the subsume process easy of every different tax across various states.
GST for consumers:
GST is a blessing for consumers as there are no complexities regarding various kind of previous indirect taxes. Although, GST slabs vary from one range of products than another. Some products are charged with higher and some are charged with a lower rate than the previous tax structure.
GST for government:
GST is expected to transform the indirect tax regime to a more organized sector by including extra tax payers. As a result, the government is going to generate more revenues for the economy. In fact, the digital GST platform will bring more transparency to the system with a simple tax administration process.
The overall GST impact
Although, it is hard for a diverse country like India to implement this new tax system with flying colors at the nook and corner of the sub-continent; in a long run it will benefit the economy with its cascading effect. With more revenue generation, GST will create more jobs, domestic and foreign investments with a higher economic growth.
The GST delusion
But the way GST is implemented in India is creating complexities and uncertainties as experts believe. These delusions are discussed below:
Multilayer taxes: India is not the first country in the globe where GST is implemented for the first time; there are countries like Australia, France and UK, where this tax system is already into play. These countries have single or double layer tax systems. But there are more than four GST tax slabs in India and it is definitely creating complexities among tax payers, entrepreneurs and common citizens.
Threshold Limit 20 lacs: The businesses with less than INR 20 lakhs annual income don’t need to enroll under the GST system. This is inspiring the birth of small companies that always want to stay outside of the GST system.
Many businesses are not included yet: Many business sectors like liquor, petrol, part of real estates are still outside this new tax system. If the businesses use these products as inputs, problems will rise there.
Multiple numbers of tax returns: As GST is a destination-based tax system, the business houses having branches all over India need to file tax returns multiple times. This makes the whole tax filing procedure hard and tedious.
