In this article, we are going to discuss Significance of Goods and Service Tax (GST) in India. Did you know that goods and service tax will now replace the other indirect taxes that exist as on today on different goods and services? GST is anticipated to one of the crucial reforms which will spur the economic growth of our country. When launched, GST will not just make the taxation framework simple but shall also help and increase the compliance, decrease the tax outflow and boost the tax revenue, while making the export market competitive.
In fact, people say that with GST coming into place, the government will be able to set a different roadmap during the upcoming budget session. GST has been a long pending reform which has been in pipeline. This taxation reform hopes to iron out all wrinkles that are present in Indian taxation system. This rich and comprehensive tax policy is forecasted to a significant one, aimed to contribute to the growth of our country India.
We have already discussed in previous posts about how GST is going to change the way India does business and Benefits of GST in India. We have also created a guide to implementing GST in your business.
Why is GST must for revolution – MAKE IN INDIA?
We all know that our Prime Minister has a dream – Make in India which will eventually enable India to come out as a promising manufacturing hub. This initiative is definitely vital because of sluggish domestic production sector and the need to pull the foreign investment. If the initiative is implemented in the right manner then it assures of creating job and employment opportunities for numerous jobless people of India.
To make India a promising manufacturing hub, it is very important that different foreign investors make their investments in India.
Present indirect tax regime
The present system of indirect taxes is plagued with assorted taxes – at different prices and at multiple points. Additionally, the absence of appropriate mechanism leads to cascading effect of such taxes. This is further crystallized by large compliance cost which keeps incurring, irrespective of the indirect taxes.
All this leads to large tax cost for production industry which is transparently unsustainable in present situation. Besides the inefficient dispute resolution framework in present indirect tax has made the foreign investors and companies high and dry. On the other hand, the foreign companies have now moved towards China and recognized SEZ and other export zones much alluring when compared to India.
GST – national agenda:
The repeated blocking of the path which leads to GST bill in Rajya Sabha by the opposition was heavily condemned by respective industry. Even though this has no significance and no business was permitted to be held during the whole monsoon session, there is a need of the hour in this industry to voice and continue its push for introducing this revolutionary legislation.
GST is one of a vital issue which is much required to usher the production sector and related revolution in India. GST is not just business or investor friendly but beneficial for the consumers too. Make in India must not be viewed like a political agenda but on large a national agenda which brings in a unified market, makes India a manufacturing hub and creates different job opportunities for the youth of our country.
Conclusion: Significance of Goods and Service Tax is high
GST is supposed to bring many benefits and advantages to consumers as well as the overall economy in India. The introduction of GST in India means that there will be lots of changes. You will have to frequently submit more data to the government. All this means you will need to have better automate your invoice software as well as GST tax reporting system. There are lots of benefits of using a good business management software in your business.
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