IMPACT OF GST ON PRICING OF PRODUCTS: POSITIVE AND NEGATIVE EFFECT

• Author(s): Dr. Anand Kumar ; Dr.Payal Mandhyan ; Dr. Shailesh Kumar Singh
• Paper ID: 1700124
• Page: 39-43
• Published Date: 22-12-2017
• Published In: Iconic Research And Engineering Journals
• Publisher: IRE Journals
• e-ISSN: 2456-8880
• Volume/Issue: Volume 1 Issue 6 December-2017

Abstract

GST is abbreviation for Goods and Service Tax. GST is also known as Value Added Tax (VAT) in few countries. To uphold a country's political and economical stability, governments often implement policies. There are many different types of policies that a government would implement to stabilize their country. As we know however, one significant policy that almost every country uses is tax (i.e. Direct or Indirect tax).The Goods and Services Tax is considered as a biggest tax reform since 1947.As we know that day of midnight session of India?s Parliament are reserved to ring in events of great significance, beginning with India?s Independence on August 15, 1947. For the NDA to choose a special mid night session to rollout its landmark GST signifies the enormous symbolism best owed on this biggest of tax reforms.GST will free India of its archaic, multi layered tax structure with a regime that will create a single market across the country. It will unify all the states with single tax rate & reduce the interface with tax inspectors, setting the stage for a new normal, as union finance minister Sri Arun Jaitley puts it. In anticipation of the new normal are anxious traders and businessman, who are grappling with the fine print of the new tax, the prospect of anti-profiteering agency and an electronic system that will now rate tax payers on how promptly they upload their invoice, pay taxes and file returns. Considered India?s most significant tax reform since independence, GST comes after 17 years of deliberations & dithering. It is considered transformational as it not only envisages a ?One Nation One Tax? policy that makes life simple for the common man, but also builds transparency & accountability in the tax collection process. It aims to curb tax evasion in a country where small traders / business routinely evade tax by not creating invoices for goods sold. It is also transformational because what seems on economic decision took intense political mono curving bringing, states on board with a give & take negotiations that has arguably diluted the bill in the process. GST is expected to be as disruptive as the recent demonetization move money but ended up hurting the country growth in final quarter (e.g. it falls from 701% to 6.1% of financial year 2016-17). Once GST comes into effect, all central- and state-level taxes and levies on all goods and services will be subsumed within an integrated tax having two components: a central GST and a state GST. The government has successfully implemented GST from 1st July 2017 and for this efforts are made continuously. The main expectation is that India to compete with World Trade. Under it, there will be tax only on value addition at each stage, with the producer or seller at every stage able to set off his taxes against the central or state GST paid on his purchases. The end-consumer will bear only the GST charged by the last dealer in the supply chain, with set-off benefits at all the previous stages. Under GST a lot of underground transactions will come over the ground. Single tax for one India proves to be a game changer in a positive way and proves to be beneficial not only to the common man, but to the country as a whole. It is our expectation that impact of GST will be positive and will bring positive effect to Indian GDP.

Keywords

Goods and Service Tax (GST), GDP, Tax Slabs, GST Rate

Citations

IRE Journals:
Dr. Anand Kumar , Dr.Payal Mandhyan , Dr. Shailesh Kumar Singh "IMPACT OF GST ON PRICING OF PRODUCTS: POSITIVE AND NEGATIVE EFFECT" Iconic Research And Engineering Journals Volume 1 Issue 6 2017 Page 39-43

IEEE:
Dr. Anand Kumar , Dr.Payal Mandhyan , Dr. Shailesh Kumar Singh "IMPACT OF GST ON PRICING OF PRODUCTS: POSITIVE AND NEGATIVE EFFECT" Iconic Research And Engineering Journals, 1(6)