BENEFITS TO ECONOMY:
Creation of unified national market: GST aims to make India a
common market with common tax rates and procedures and remove
the economic barriers thus paving the way for an integrated
economy at the national level.
Boosts to ‘Make in India' initiative: GST gives a major boost to the
‘Make in India' initiative of the Government of India by making goods
and services produced in India competitive in the national as well as
international market. This will create India as a manufacturing hub.
Enhanced investment and employment: The subsuming of
major Central and State taxes under GST, complete and
comprehensive set-off of input tax on goods and services reduces the
cost of locally manufactured goods and services and increases the
competitiveness of Indian goods and services in the international
market and thus, gives boost to investments and Indian exports. With
a boost in exports and manufacturing activity, more employment will
be generated and GDP will increase.
SIMPLIFIED TAX STRUCTURE:
Ease of doing business: Simpler tax regime with fewer
exemptions along with reduction in multiplicity of taxes under GST has
led to simplification and uniformity in tax structure. The uniformity in
laws, procedures and tax rates across the country makes doing
business easier.
Certainty in tax administration: Common system of classification of
goods and services across the country ensures certainty in tax
administration across India.
EASY TAX COMPLIANCE:
Automated procedures with greater use of IT: There are
simplified and automated procedures for various processes such as
registration, returns, refunds, tax payments. All interaction is
primarily through the common GSTN portal, therefore, less public
interface between the taxpayer and the tax administration.
Reduction in compliance costs: The compliance cost is lesser
under GST as multiple record-keeping for a variety of taxes is not
needed, therefore, there is lesser investment of resources and
manpower in maintaining records. The uniformity in laws, procedures
, and tax rates across the country goes a long way in reducing the
compliance cost.
ADVANTAGES FOR TRADE AND INDUSTRY:
Benefits to industry: GST has given more relief to industry,
trade and agriculture through a more comprehensive and wider
coverage of input tax set-off and service tax set- off, subsuming of
several Central and State taxes under GST. The transparent and
complete chain of set-offs which results in widening of tax base and
better tax compliance also leads to lowering of tax burden on an
average dealer in trade and industry.
Mitigation of ill effects of cascading: By subsuming most of the
Central and State taxes into a single tax and by allowing a set-off of
prior-stage taxes for the transactions across the entire value chain, it
helps in mitigating the ill effects of cascading, improving
competitiveness and improving liquidity of the businesses.
Benefits to small traders and entrepreneurs: GST has increased
the threshold for GST registration for small businesses. Further, single
registration is needed in one State. Small businesses have also been
provided the additional benefit of composition scheme. With the
creation of a seamless national market across the country, small
enterprises have an opportunity to expand their national footprint
with minimal investment.
GST COUNCIL:
GST council was established by Government of India, to modify,
regulate and reconcile India’s Goods & Services Tax.
It acts as a joint forum and provides crucial GST advice to the Union
and the States.
It was formed under article 279A of the Constitution of India.
The President shall, within 60 days from the date of commencement of
the Constitution (101st Amendment) Act, 2016, by order, constitute a
Council to be called the Goods and Services Tax Council. Accordingly,
the President has since constituted the GST Council on 15th September
2016.
COMPOSITION OF GST COUNCIL:
a Union Finance Minister Chairperso
Creation of unified national market: GST aims to make India a
common market with common tax rates and procedures and remove
the economic barriers thus paving the way for an integrated
economy at the national level.
Boosts to ‘Make in India' initiative: GST gives a major boost to the
‘Make in India' initiative of the Government of India by making goods
and services produced in India competitive in the national as well as
international market. This will create India as a manufacturing hub.
Enhanced investment and employment: The subsuming of
major Central and State taxes under GST, complete and
comprehensive set-off of input tax on goods and services reduces the
cost of locally manufactured goods and services and increases the
competitiveness of Indian goods and services in the international
market and thus, gives boost to investments and Indian exports. With
a boost in exports and manufacturing activity, more employment will
be generated and GDP will increase.
SIMPLIFIED TAX STRUCTURE:
Ease of doing business: Simpler tax regime with fewer
exemptions along with reduction in multiplicity of taxes under GST has
led to simplification and uniformity in tax structure. The uniformity in
laws, procedures and tax rates across the country makes doing
business easier.
Certainty in tax administration: Common system of classification of
goods and services across the country ensures certainty in tax
administration across India.
EASY TAX COMPLIANCE:
Automated procedures with greater use of IT: There are
simplified and automated procedures for various processes such as
registration, returns, refunds, tax payments. All interaction is
primarily through the common GSTN portal, therefore, less public
interface between the taxpayer and the tax administration.
Reduction in compliance costs: The compliance cost is lesser
under GST as multiple record-keeping for a variety of taxes is not
needed, therefore, there is lesser investment of resources and
manpower in maintaining records. The uniformity in laws, procedures
, and tax rates across the country goes a long way in reducing the
compliance cost.
ADVANTAGES FOR TRADE AND INDUSTRY:
Benefits to industry: GST has given more relief to industry,
trade and agriculture through a more comprehensive and wider
coverage of input tax set-off and service tax set- off, subsuming of
several Central and State taxes under GST. The transparent and
complete chain of set-offs which results in widening of tax base and
better tax compliance also leads to lowering of tax burden on an
average dealer in trade and industry.
Mitigation of ill effects of cascading: By subsuming most of the
Central and State taxes into a single tax and by allowing a set-off of
prior-stage taxes for the transactions across the entire value chain, it
helps in mitigating the ill effects of cascading, improving
competitiveness and improving liquidity of the businesses.
Benefits to small traders and entrepreneurs: GST has increased
the threshold for GST registration for small businesses. Further, single
registration is needed in one State. Small businesses have also been
provided the additional benefit of composition scheme. With the
creation of a seamless national market across the country, small
enterprises have an opportunity to expand their national footprint
with minimal investment.
GST COUNCIL:
GST council was established by Government of India, to modify,
regulate and reconcile India’s Goods & Services Tax.
It acts as a joint forum and provides crucial GST advice to the Union
and the States.
It was formed under article 279A of the Constitution of India.
The President shall, within 60 days from the date of commencement of
the Constitution (101st Amendment) Act, 2016, by order, constitute a
Council to be called the Goods and Services Tax Council. Accordingly,
the President has since constituted the GST Council on 15th September
2016.
COMPOSITION OF GST COUNCIL:
a Union Finance Minister Chairperso
