Chapter 10. Future of Goods & Service Tax GST in India
Since long back in 2006, when GST was introduced in Parliament has been one of the most debatable topic as it an indirect tax reform which will replace all existing indirect taxes. GST was designed to conquer the problems with the current taxation in India facing. Despite discussing about GST and framing roadmap in previous years, GST was never passed by the Parliament.
On 3rd August 2016, when GST bill (122nd Amendment Bill) was passed by Rajya Sabha, in near it will be an achievement for not the Government, but to businessman, common man and to whole economy. GST will outplace, all the indirect taxes levied at different levels.
There were some challenges faced by Finance Minister, as in Rajya Sabha majority was against this bill to pass, as from respective state, this bill need consent and it was a difficult task to get them in unity. Also, for IT network, it will be a biggest challenge, as they have to develop GST portal for registration, return filing, tax payments, etc. For the State Government, it will be loss of revenues and regarding all the concern for GST bill, Finance Minister gave full support to eliminate these issues. And GST will make superb tax structure, which will be better than current taxation system.
Once GST is fully applicable to taxation reform, it will flatten economic barriers that slow down the growth while benefiting government, across states, which included local taxes, multiple tariffs, limitation of transportation which is a waste of time. If we see, at transportation in India, Trucks have to be in a queue to cross state borders and various checkpoints and they have to pay municipal entry tax and it is wastage of time. And in near future, with GST regime, no entry tax, which will allow more manufacturers to send their goods to final users of products/ services.
Post GST, it will be easier for small entrepreneurs’ to set up business in India and they need not to think for dozen of taxes to pay for their resources, which in return will be benefited to economy.
Most important element of GST model is that: there should be single low rate; there will be seamless flow of tax through the stages of distribution channel, no paperwork as all the things will be done computerized which will benefit to administrative system,
As mentioned above, GST will work effectively and efficiently, which will enhance production and it will increase country’s GDP. It will be a game changer for nation and all the stakeholders will unite and develop something which beneficial to Indian Industry.