Since the beginning of the monsoon session in the Parliament, the term GST has been in thenews. Even before this, the term is being linked with parliament. Lets draw a light on this current affair terminology and gain some information about it.
What is GST?
As the term itself states its meaning, this tax is levied on goods and services. The tax will unify the India by replacing all the indirect taxes levied on goods and services in the country. Many other countries like Australia, Japan, Canada, and Germany, etc. have implemented GST and is fully successful in their nation. GST was first raised by BJP government under Atal Bihari Vajpayee regime in 2000. A committee was also framed to empower it under Asim Das Gupta. But the Bill was introduced in Lok Sabha in 2014 as Goods and Service Tax bill or the constitution (122 amendment) bill, 2014. The bill was passed by Lok Sabha in May, this year.
The issue has made lot of hype these days. This has got some pros and cons with reference to the global scenario and national conditions.
Pros
- This tax is simple enough to be levied and is cost saving as it is the replacement of various indirect taxes reducing cascading effect of taxes
- This will implement one India, one tax rate. Currently, different states have different tax rates. GST will make a single rate in the entire nation
- GST will increase the tax revenue for government
- It will reduce the cost of production which will make Indian goods and services competitive and will increase the export
- This Tax is expected to lower down the corruption as multiple tax system will get vanished
Cons
- The tax is expected to make customers unhappy as it will fetch the amount that is to be taken by manufacturers through tax credit system.
- Some states like Jharkhand, who are dependent on their products, would have to share their revenue with government, making it a loss deal for them
- The Center will get the power to share revenue with states making center more powerful and states to follow it.
Why in News?
Currently, as the mansoon session is running in the Parliament, GST, Lalit modi are the major points being drown in the session. Recently, the move for introduction of the constitution Amendment Bill of GST was supported by the Finance Minister Arun Jaitley. Being a much-delayed bill, the finance minister pointed congress stating that the party is creating hurdles in country’s growth. On its contrary, the Congress leader Anand Sharma stated that GST can’t be discussed as it has not bee discussed earlier in the Business Advisory Committee and no time had been allocated for it.
Conclusion
Indian government is working hard to compete with the global progress. Indian economy is growing very fast and according to the survey, it will overcome china’s economy in future. Currently, china is facing tough times as its currency is facing fall down. India has learned to regain the economic pace and with implantation of GST it will make Indian economy stronger. But the results lies in its implementation and feedback form the society.
