GST Good OR Bad

                                       

GST GOOD OR BAD

After completion of so many months of implementation of  GST  in India, lots of confusion question, litigation came out. But one question commonly come to all of us that ‘is really GST boost our economy?’ or ‘It is needed or not to implement of GST?’

In this blog we are focus here ,what problem the common people faces after implementation of GST and try to find out the answer why Government implement GST in our developing economic background in India context.

The current Problem that we face after the implementation of GST

We know from the earlier blog How GST works that GST reduces the tax burden from the common people and eliminate cascading of taxes and give transparency in our tax structure, but after  its immediate implementation traders are faces lots of problems .Due to the lack of knowledge consumers are also confused when they went to the market.

In the earlier stages complicated registration process creates so many problems. Many traders don’t understand the Reverse charge mechanism and input tax credit. More over the software process confused the traders. Especially GST hits the small traders. Small traders are not able to sale their product to the big traders because they do not able to complete their registration under GST. In this puzzled some situation small traders do not able to supply their product to the big seller, and who have able to complete their registration also get small orders due to the fluctuation of the market. So the supply and demand both are hampered after the immediate implementation of GST.

Three times tax return fill up also create a headache of the traders moreover they do not get tax return in time. So this hit the cash flow in the business so badly.

Demonetizations and implementation of GST hits our GDP growth rate also.

Is GST really boost our Indian economy , this big question is arise in our mind when we face a big  problem in our day today life after the implementation of GST ,though Our PM elaborate the term GST as "Good and simple tax" to simplify its meaning.In short it can be said that GST is a structured tax  system and to build a well framed tax system in India it is really needed.

Firstly, the problem which our nation faces is primary problem. It is not sustain for longer period. When the problem of registration and confusion over we get a one tax one nation system through GST. It is easy to calculate and transparent in nature.

Secondly, Government also aware about the problem arises due to GST and try to remove in a quick service process, through formation a special teams and carry out drivers to increase the number of traders registered under GST.

Thirdly, e-way bill is one more initiative of the government to solve out the GST night mare. May be the new tax system take time to solve this indirect taxation process but it is not impossible one.More over e-way bill rules will be ruled out on a trial basis on 24th GST meeting.

Fourthly, a transparency and well formed taxation obviously attract foreign investors to invest, which will help to improve our economic condition.

Fifthly, Businessman who are earlier migrated from VAT, service tax, excise duty are now forced to registered under GST and pay the tax.

Sixthly, one tax regime all the states will also enhancing domestic investor to invest.

India is a developing country mainly suffering because of lack of capital, infrastructure, health, education issues. If the capital flow through investment and proper infrastructure through government intervention will happen then it may be said that GST will help to boost our economy over time.  

On the other way it not be overlook and said that before the implementation of GST some structured process  needed.