Goods & Service Tax: The Government’s No 1 Economic Agenda

By on May 03, 2014
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Goods & Service Tax: The Government’s No 1 Economic Agenda

As the election season enters its final stretch, both the leading national parties agree that the single most important financial reform needed to kickstart the slowing economy is the introduction of Goods and Service Tax (GST). It is expected that the introduction of GST will increase India’s GDP by one to two per cent. This would mean employment generation of 15 to 25 lakh new jobs and a positive gain of $15 billion (`905bn). This represents a massive human and financial rate of return and would be an important milestone in the history of post-independence India

Any business man or woman, would admit spending more time, money and energy managing various statutory tax obligations, separate deadlines for each law, separate departments, separate tax returns, separate tax assessments, etc than on managing and growing their businesses. 

As the words suggest, all indirect taxes pertaining to goods and services will be merged into a common law: Goods & Service Tax (GST). GST is expected to provide relief to industries, trade and consumers by doing away with multiple taxes on the same goods and services by subsuming most indirect taxes, avoiding the cascading effect through the availability of uninterrupted input credit across the supply chain and providing a simple 
tax administration through harmonisation of central and state tax systems.

GST is a destination-based tax on goods and services levied on each point of sale or provision of service, in which, at the time of sale of goods or providing the services, the seller or service provider can claim the input credit of tax which he has paid while purchasing the goods or availing the service. 

Read the full article in 'Viva Goa' magazine copy.
Viva Goa magazine is now on stands. Available at all major book stalls and supermarkets in Goa.

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