GST, an acronym for Goods and Services Tax, is a great undertaking by the government of India that is expected to serve much-needed push for economic development in the country by amending the current base of indirect government income towards the free flow of commodities and other services.
What is the Impact of GST on the Indian Economy?
GST acts as a game-changing amendment for the economy of India. It is likely to bring the net price for both goods and services. Here are some factors that have caused a great impact on the economy of India:
- Simple Tax Structure
Calculating taxes under GST is very simple. Rather than many taxations under various stages of the supply chain, GST comes across as one single tax. That way it helps one save time as well as money.
- Credit for the Taxes
GST will provide credit for the taxes which are paid by the producers dealing with goods or services. That way it will encourage producers for the purchase of raw materials from various dealers.
- Remove Custom Duties
One of the great impacts on the Indian economy is that it will eliminate the customs duties as relevant on exports.
- Economic Union of India
Goods can easily be transported from one state to another after GST. As goods are transported all over India without hassles, it benefits almost every business. As a result, it improves the production allowing the businesses to focus more on their operations all over the country.
- Uniform Tax Regime
As you know that GST is a single tax, it benefits the taxpayers by making it easy for them to pay taxes regularly.
GST is expected to remove the falling effect of taxes. There’s no denying India is likely to play a very crucial role in the world economy in the coming years. Even the expectation of GST is high within India and other neighboring countries as well.